Convertible Securities definition: Copy, customize, and use instantly
Introduction
The term "Convertible Securities" refers to financial instruments that can be exchanged for a different form of security, typically common stock. These securities are commonly issued to attract investors by offering downside protection with the potential for equity participation. Convertible Securities are important in various financial transactions, including corporate financing, mergers, and structured investment products.
Below are various examples of how "Convertible Securities" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Convertible Securities" in corporate financing
This definition ties "Convertible Securities" to corporate fundraising.
"Convertible Securities" means any debt or equity instruments issued by a corporation that grant the holder the right to convert them into common stock under specified conditions.
Definition of "Convertible Securities" in venture capital
This definition connects "Convertible Securities" to startup financing.
"Convertible Securities" refers to financial instruments issued in early-stage funding rounds that convert into equity at a future valuation event, such as a priced equity round.
Definition of "Convertible Securities" in private equity
This definition links "Convertible Securities" to leveraged buyouts and structured transactions.
"Convertible Securities" means debt or preferred equity instruments that provide an option to convert into common equity, typically structured to benefit investors in private equity transactions.
Definition of "Convertible Securities" in preferred stock structures
This definition applies "Convertible Securities" to preference shares.
"Convertible Securities" refers to preferred shares that include a conversion feature, allowing holders to exchange them for a predetermined number of common shares.
Definition of "Convertible Securities" in convertible bond structures
This definition ties "Convertible Securities" to hybrid debt instruments.
"Convertible Securities" means bonds or debentures that include a conversion option, allowing holders to exchange the debt for equity in the issuing company.
Definition of "Convertible Securities" in employee compensation plans
This definition connects "Convertible Securities" to stock-based compensation.
"Convertible Securities" refers to equity-linked instruments granted to employees, such as convertible notes or stock options, which convert into company shares upon vesting or certain corporate events.
Definition of "Convertible Securities" in public offerings
This definition links "Convertible Securities" to capital market issuances.
"Convertible Securities" means instruments offered in public markets that provide investors with the right to convert into equity under defined circumstances, such as mandatory or voluntary conversion provisions.
Definition of "Convertible Securities" in distressed financing
This definition applies "Convertible Securities" to restructuring scenarios.
"Convertible Securities" refers to financial instruments issued as part of a restructuring transaction, allowing creditors to exchange debt for equity to improve a company's capital structure.
Definition of "Convertible Securities" in merger and acquisition transactions
This definition ties "Convertible Securities" to corporate takeovers.
"Convertible Securities" means any financial instruments that convert into acquiring company shares as part of a merger, acquisition, or consolidation process.
Definition of "Convertible Securities" in regulatory filings
This definition connects "Convertible Securities" to securities law disclosures.
"Convertible Securities" refers to financial instruments that require disclosure under securities regulations due to their potential to dilute existing equity upon conversion.
Definition of "Convertible Securities" in strategic partnerships
This definition links "Convertible Securities" to investment alliances.
"Convertible Securities" means instruments issued as part of a strategic partnership agreement, providing investors with equity conversion rights in a company under agreed-upon terms.
Definition of "Convertible Securities" in high-yield investment strategies
This definition applies "Convertible Securities" to investment portfolios.
"Convertible Securities" refers to hybrid financial instruments included in investment funds, balancing fixed income stability with potential equity upside.
Definition of "Convertible Securities" in tax treatment considerations
This definition ties "Convertible Securities" to tax planning.
"Convertible Securities" means financial instruments subject to specific tax treatment, depending on their classification as debt or equity upon conversion.
Definition of "Convertible Securities" in bankruptcy proceedings
This definition connects "Convertible Securities" to insolvency cases.
"Convertible Securities" refers to debt or equity instruments subject to restructuring under bankruptcy law, with conversion terms potentially adjusted in creditor negotiations.
Definition of "Convertible Securities" in hedge fund strategies
This definition links "Convertible Securities" to arbitrage investing.
"Convertible Securities" means instruments used in convertible arbitrage strategies, where investors capitalize on price differentials between a bond and its underlying stock.
Definition of "Convertible Securities" in sovereign debt markets
This definition applies "Convertible Securities" to government-backed instruments.
"Convertible Securities" refers to government-issued bonds with conversion features, typically linked to GDP growth or commodity performance.
Definition of "Convertible Securities" in cryptocurrency and blockchain finance
This definition ties "Convertible Securities" to tokenized assets.
"Convertible Securities" means digital tokens or blockchain-based financial instruments that can be exchanged for equity in decentralized finance ecosystems.
Definition of "Convertible Securities" in environmental, social, and governance investments
This definition connects "Convertible Securities" to sustainability-linked financing.
"Convertible Securities" refers to instruments with conversion triggers based on performance metrics, encouraging responsible corporate behavior.
Definition of "Convertible Securities" in real estate investment trusts
This definition links "Convertible Securities" to real estate portfolios.
"Convertible Securities" means real estate issued instruments that allow holders to convert debt or preferred equity into property-backed common shares.
Definition of "Convertible Securities" in structured finance
This definition ties "Convertible Securities" to complex financial products.
"Convertible Securities" refers to structured financial instruments that include an embedded option for the holder to convert into equity under specified conditions.
Definition of "Convertible Securities" in startup bridge financing
This definition connects "Convertible Securities" to short-term funding.
"Convertible Securities" means interim financing instruments issued to early-stage companies, converting into equity during the next qualified funding round.
Definition of "Convertible Securities" in credit risk management
This definition links "Convertible Securities" to risk assessment.
"Convertible Securities" refers to financial instruments that mitigate credit risk by offering conversion into equity as an alternative to repayment in cash.
Definition of "Convertible Securities" in leveraged finance
This definition applies "Convertible Securities" to high-yield debt markets.
"Convertible Securities" means debt instruments issued as part of a leveraged transaction, offering conversion options to reduce interest expense.
Definition of "Convertible Securities" in financial derivatives
This definition ties "Convertible Securities" to derivative instruments.
"Convertible Securities" refers to financial instruments with embedded derivative features, allowing conversion based on specified trigger events.
Definition of "Convertible Securities" in international investment agreements
This definition connects "Convertible Securities" to cross-border investments.
"Convertible Securities" means debt or equity instruments issued in international markets, allowing investors to convert holdings into local currency-denominated equity.
Definition of "Convertible Securities" in special purpose acquisition companies (spac’s)
This definition links "Convertible Securities" to spac structures.
"Convertible Securities" refers to instruments issued by spacs that convert into common shares upon completion of a business combination.
Definition of "Convertible Securities" in market volatility strategies
This definition applies "Convertible Securities" to investment risk management.
"Convertible Securities" means financial instruments designed to offer downside protection while providing upside potential through equity conversion.
Definition of "Convertible Securities" in anti-dilution protection
This definition ties "Convertible Securities" to investor rights.
"Convertible Securities" refers to instruments with built-in anti-dilution protections, ensuring that conversion ratios adjust if new shares are issued at a lower valuation.
Definition of "Convertible Securities" in deferred compensation plans
This definition connects "Convertible Securities" to employee benefits.
"Convertible Securities" means compensation-related financial instruments that convert into equity over time, aligning employee incentives with long-term company performance.
Definition of "Convertible Securities" in mezzanine financing
This definition links "Convertible Securities" to subordinated debt.
"Convertible Securities" refers to mezzanine financing instruments that provide investors with the right to convert debt holdings into company stock.
Definition of "Convertible Securities" in public-private partnerships (ppps)
This definition applies "Convertible Securities" to government-backed projects.
"Convertible Securities" means financial instruments issued in PPP projects, allowing private investors to convert debt into equity stakes in infrastructure developments.
Definition of "Convertible Securities" in cross-border mergers
This definition ties "Convertible Securities" to international corporate transactions.
"Convertible Securities" refers to financial instruments that convert into acquiring company shares as part of a cross-border merger or acquisition.
Definition of "Convertible Securities" in biotechnology and pharmaceutical financing
This definition connects "Convertible Securities" to life sciences investments.
"Convertible Securities" means financial instruments issued to fund biotech R&D, converting into equity upon successful regulatory approvals or milestones.
Definition of "Convertible Securities" in alternative lending
This definition links "Convertible Securities" to non-traditional financing models.
"Convertible Securities" refers to instruments used by alternative lenders, offering borrowers equity conversion rights instead of traditional repayment terms.
Definition of "Convertible Securities" in blockchain tokenization
This definition applies "Convertible Securities" to digital asset markets.
"Convertible Securities" means tokenized financial instruments that allow holders to convert blockchain-based tokens into traditional equity shares.
Definition of "Convertible Securities" in franchise financing
This definition ties "Convertible Securities" to franchise business investments.
"Convertible Securities" refers to financial instruments issued to franchisees, allowing conversion into equity participation in the franchising company.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.