Hybrid Security

Hybrid Security - Hybrid Security is the combination of more than two variables of different financial instruments. Hybrid Security is a combination with debt characteristics and equity characteristics. The example that is most common with hybrid security is a bond that is convertible. The bond has unique features of an ordinary bond, but it is volatile and influenced by the movement price of the stock certificate. Hybrid securities are a new introduction to meet the needs of the savvy stock investor. Some hybrid securities are so complicated that to define them in the traditional sense is to define them as debt or equity.