Convertible Security
A hybrid debt instrument or preference share giving its holder the option to convert into equity shares at a pre-determined date and conversion ratio based on a pre-determined equity price.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
Where this is taught
Free preparation for NISM Series XIX-B← All terms