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Convertible bonds are usually issued offering a higher yield than obtainable on the shares into which the bonds convert. Convertible bonds are safer than preferred or common shares for the investor. They provide asset protection, because the value of the convertible bond will only fall to the value of the bond floor: however in reality if stock ...
A contingent convertible bond (CoCo), also known as an enhanced capital note (ECN), [1] is a fixed-income instrument that is convertible into equity if a pre-specified trigger event occurs. [2] The concept of CoCo has been particularly discussed in the context of crisis management in the banking industry. [ 3 ]
In the past, companies would issue shares on paper stock certificates and then use the cap table as an accounting representation and summary of share ownership. Public companies have increasingly eliminated all paper stock certificates in a process called "dematerialization" to simplify and decrease transactions costs. Most global regulators ...
A reverse convertible security is a type of convertible security where a bond or short-term note can be converted to cash, debt or equity at a set date by the issuer based on an underlying stock. In effect it is a type of option on the maturity date where the bond can be converted to shares or cash.
Cash and cash equivalents are listed on balance sheet as "current assets" and its value changes when different transactions are occurred. These changes are called "cash flows" and they are recorded on accounting ledger. For instance, if a company spends $300 on purchasing goods, this is recorded as $300 increase to its supplies and decrease in ...
Foreign currency convertible bonds (FCCBs) are a special category of bonds that are issued in currencies different from the issuing company's domestic currency. Corporates typically issue FCCBs to raise money in foreign currencies. These bonds retain all features of a convertible bond, making them attractive to both the investors and issuers.
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Dilutive securities are financial instruments—usually stock options, warrants, convertible bonds—which increase the number of common shares if exercised; this then reduces, or "dilutes", the basic EPS (earnings per share). [1] Thus, only where the diluted EPS is less than the basic EPS is the transaction classified as dilutive.
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