convertible security

Definition of "convertible security"
  1. A type of financial instrument, such as preferred stock, that grants the holder the option to change it into a different type, such as common stock
How to use "convertible security" in a sentence
  1. The company issued a convertible security which investors could later change into common stock.
  2. Convertible security allowed flexibility for the holder to adjust the investment according to market trends.
  3. Due to the promising future of the company, many opted to invest in its convertible security.

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