Convertible Bond

Convertible Bond - a convertible bond is a corporate bond that can be exchanged by the shareholder as an option for a specific number of shares of either common stock or preferred stock... The convertible bond is usually a juvenile debenture (unsecured debt, backed by the integrity of the borrower and not by collateral and is recorded and documented by an agreement called a debenture. An unsecured bond is one example of a debenture. The convertible bonds in the US and Japan are the two largest in the world in terms of market capitalism, so they are of great importance to the global market..