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Convertible preferred stock that may be exchanged, at the issuers option, into convertible bonds that have
the same conversion features as the convertible preferred stock.
Convertible preferred
Mainly applies to convertible securities. Similar to convertible bond except represents equity in the
corporation. Divided income is not a pre-tax income item for the issuing corporation, but holding institutions
are entitled to an 85% exclusion of dividends.
Convertible preferred stock
Preferred stock that can be converted into common stock at the option of the holder.
Convertible price
The contractually specified price per share at which a convertible security can be converted into shares of
common stock.
Convertible security
A security that can be converted into common stock at the option of the security holder, includes convertible
bonds and convertible preferred stock.
Converts
Mainly applies to convertible securities. System that permits monitoring of the convertibles marketplace
through a personal computer.
Convex
Bowed, as in the shape of a curve. Usually referring to the price/required yield relationship for option-free
bonds.
Convexity
A convex curve is one where you draw a straight line connecting the end points and the curve falls below the
straight line. If the curve is above, it is known as concave.
Core competency
Primary area of competence. Narrowly defined fields or tasks at which a company or business excels.
Primary areas of specialty.
Cornering the market
Used in the context of general equities. (illegal) Purchasing a security or commodity in such volume that
control over its price is achieved (e.g., Unhappy news for a short seller, who would have to pay an inflated
price to cover).
Corporate acquisition
The acquisition of one firm by another firm.
Corporate bonds
Debt obligations issued by corporations.
Corporate charter
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