Convertible bonds are a bone of contention among some investor and shareholder advocates when the conversion is automatically ...

A convertible bond’s conversion ratio specifies how many shares of common stock it can be redeemed for. The higher the ratio, the more shares the bond is worth. For instance, a 5:1 convertible ...

Convertible bonds offer corporations a cheaper way to borrow money for expansion. They offer investors lower rates but more ...

Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution. A bond’s conversion ratio determines how many shares an investor will get for it. Companies can force ...

A convertible bond is an investment vehicle that starts ... set at the time the bond is initially sold. The conversion ratio, also set at initial sale time, specifies how many shares of stock ...

and its conversion ratio indicates how many shares an investor can receive for making a swap. For example, a single convertible corporate bond with a 3-to-1 ratio can be exchanged for three shares ...