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In finance, a convertible bond, convertible note, or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like ...
Capital notes are a form of convertible security exercisable into shares.They are equity vehicles. Capital notes are similar to warrants, except that they often do not have an expiration date or an exercise price (hence, the entire consideration the company expects to receive, for its future issue of shares, is paid when the capital note is issued).
Unlike a convertible note, a SAFE is not a loan; it is more like a warrant. In particular, there is no interest paid and no maturity date, and therefore SAFEs are not subject to the regulations that debt may be in many jurisdictions. This simplicity is the primary motivation of a SAFE.
Convertible notes allow companies more time to develop their businesses before deciding who gets what. In recent months, however, more established companies that have already raised priced rounds ...
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.
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]
SanDisk is booting up an attempt to raise some capital. The company announced that it intends to float an issue of convertible senior notes in a private offering to qualified institutional buyers.
Hybrid securities are a broad group of securities that combine the characteristics of the two broader groups of securities, debt and equity.. Hybrid securities pay a predictable (either fixed or floating) rate of return or dividend until a certain date, at which point the holder has a number of options, including converting the securities into the underlying share.