Convertibly definitions
| Word backwards | ylbitrevnoc |
|---|---|
| Part of speech | Adverb |
| Syllabic division | con-ver-ti-bly |
| Plural | The plural form of the word "convertibly" is convertibly. |
| Total letters | 11 |
| Vogais (3) | o,e,i |
| Consonants (8) | c,n,v,r,t,b,l,y |
Convertibly refers to an investment security, typically a bond or preferred stock, that can be converted into a predetermined number of common shares. This conversion typically occurs at the option of the holder or issuer of the security.
How Convertibles Work
Convertible securities often offer investors a way to participate in the potential upside of a company's stock while providing some downside protection through their bond-like characteristics. The conversion feature allows the holder to convert the security into the company's common shares at a specified price, typically determined at the time of issuance.
Benefits of Convertibles
One of the key benefits of convertibles is their flexibility. Investors can choose to hold the security for its fixed-income characteristics or convert it into equities if the company's stock price rises significantly. This can provide investors with the potential for capital appreciation while also offering downside protection through the security's bond-like features.
Risks of Convertibles
While convertibles offer several advantages, they also come with their own set of risks. The value of convertibles is influenced by both the performance of the underlying stock and interest rates. If the company's stock price does not perform well or interest rates rise, the value of the convertible security may decrease.
Additionally, convertibles may have lower yields compared to traditional bonds due to their conversion feature. Investors should carefully consider their risk tolerance and investment goals before investing in convertibles.
In conclusion, convertibles are a unique investment option that combines the characteristics of both bonds and stocks. By understanding how convertibles work and the risks and benefits they offer, investors can make informed decisions about whether to include them in their investment portfolios.
Convertibly Examples
- The two currencies were traded convertibly at the border.
- The software program allows files to be converted convertibly into different formats.
- The contract stipulated that the payment could be made convertibly in either cash or shares.
- The convertible car top can be easily lowered to enjoy the sunny weather.
- The hotel room was convertibly arranged to accommodate either a single guest or a couple.
- The bond was issued as a convertible security that could be exchanged for company stock.
- The investment portfolio was diversified convertibly to minimize risk.
- The document was scanned and saved convertibly as a PDF for easy sharing.
- The building was designed convertibly so that office spaces could be easily converted into apartments.
- The multi-purpose furniture item could be convertibly used as a table or a chair.