Everything about Convertible security
Stock trading reference
A convertible security is a financial instrument whose holder has the right to convert it into another security of the same issuer. Most convertible securities are convertible bonds or preferred stocks that pay regular interest and can be converted into shares of the issuer's common stock. Convertible securities typically include other embedded options, such as call or put options. Consequently, determining the value of convertible securities can be a complex exercise. The complex valuation issue may attract specialized professional investors, including arbitrageurs and hedge funds who try to exploit disparities in the relationship between the price of the convertible security and the underlying common stock. Wikipedia →
🧭 Start here: a 6-step reading path
- Read the overview: Convertible securityA 5-minute orientation
- Skim a recent paper: Balancing climate mitigation and energy security goals amid converging global energy crises: The role of green investmentsInfluential work since 2022
- Pick up a classic book: The Handbook of Hybrid SecuritiesThe most-reprinted book on the subject
- Read the landmark paper: Convertible calls and security returnsCited 159 times
- Go sideways: Convertible bondA closely related topic
- Go sideways: Yield (finance)A closely related topic
📖 Definitions
Noun A security that can be converted into another security.
🏆 Landmark papers (most cited)
Convertible calls and security returns
Agency Problems, Information Asymmetries, and Convertible Debt Security Design
Convertible security design and contract innovation
Liquidity Costs and Stock Price Response to Convertible Security Calls
The buyers’ perspective on security design: Hedge funds and convertible bond call provisions
Improved convertible authenticated encryption scheme with provable security
On the security of a convertible authenticated encryption
Convertible Bond Issues: Evidence from Security Markets
🆕 Influential since 2022
📚 Books worth reading
The Handbook of Hybrid SecuritiesJan De Spiegeleer, Wim Schoutens · 2014
The international handbook of convertible securitiesThomas C. Noddings, Susan C. Christoph · 1998- 📕Contingent Convertible BondsMohamed Bou Sleiman · 2015
Hybrid SecuritiesKamil Liberadzki, Marcin Liberadzki · 2016
Global convertible investingHart Woodson, III, A. Hartswell Woodson · 2001
Enhanced ConvertiblesAllan S. Lyons · 1995
Equity hybrid derivativesMarcus Overhaus, Ana Bermudez · 2007- 📕Evaluation of convertible securitiesSheen T. Kassouf · 1962
Ranked by number of editions on Open Library, a rough measure of how lasting a book is.
🔗 Related topics
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