Applies mainly to convertible securities. Means the issuer, if so stated, may substitute a convertible debenture for an existing convertible preferred with identical terms. Most often used when a corporation has an immediate need for equity capital and a low tax rate, and expects either or both conditions to change. This would make the debenture less attractive if the interest tax-deductibility is lost.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). exchangeable. Retrieved September 21, 2026, from http://smartdefine.org/exchangeable/definitions/1153360 |
| Chicago | Barry Goldsmith. 2010. "exchangeable" http://smartdefine.org/exchangeable/definitions/1153360 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, exchangeable, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/exchangeable/definitions/1153360>. |
| MLA | Barry Goldsmith. "exchangeable" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/exchangeable/definitions/1153360> |