A convertible security is a security that can be converted into another security. Convertible securities may be convertible bonds or preferred stocks that pay regular interest and can be converted into shares of common stock (sometimes conditioned on the stock price appreciating to a predetermined level). Warrants are equity convertible securities. They give the owner the option to buy newly-issued shares at a determined exercise price and date. Equity capital notes are similar to warrants, except that there is no exercise price.
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Famous quotes containing the words convertible and/or security:
“But every jet of chaos which threatens to exterminate us is convertible by intellect into wholesome force. Fate is unpenetrated causes.”
—Ralph Waldo Emerson (1803–1882)
“Modern children were considerably less innocent than parents and the larger society supposed, and postmodern children are less competent than their parents and the society as a whole would like to believe. . . . The perception of childhood competence has shifted much of the responsibility for child protection and security from parents and society to children themselves.”
—David Elkind (20th century)