What is the meaning of Convertible?

Convertible is a security which can be exercised into another security. Examples of convertibles are bonds, preferred stocks, warrants, and some swap agreements. Convertibles are related to options because they have specified spans for exercise, conversion price levels which approximate strike prices, and there are inherent premium structures. These premiums are related to volatility considerations.

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APABarry Goldsmith. (2010). convertible. Retrieved September 22, 2026, from http://smartdefine.org/convertible/definitions/1150764
ChicagoBarry Goldsmith. 2010. "convertible" http://smartdefine.org/convertible/definitions/1150764 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, convertible, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/convertible/definitions/1150764>.
MLABarry Goldsmith. "convertible" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/convertible/definitions/1150764>
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