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Information on convertible bond rates and quotes.www.business.com/finance/convertible-bond-quotes/
Business directory to 401k rollover information and advice.www.business.com/finance/401k-rollover/
Retirement industry advisers and consultants.www.business.com/finance/retirement-consultants/
Companies that provide retirement plan benefits, including 401k plans and pensions. Get information on corporate retirement plans, or how to offer retirement benefits for employees.www.business.com/finance/retirement-plans/
401(k) plans allow employees to save for their retirement by contributing a portion of their wages to an individual account. Employers can also contribute to 401(k) plans in the form of employee benefits; be sure your 401(k) vendor can manage your employees’ investments wisely.www.business.com/finance/401k/
Convertible bonds, like most investments, carry a risk of loss. A convertible bond is a bond that the holder can convert to a share of a company's equity at certain periods during the bond duration. Read More »
A convertible bond is issued as hybrid security. This means that for the holder, convertible bonds are similar to equity or debt holdings. Read More »
Convertible bonds are corporate debt instruments that allow the investor to trade in the debt for an equity position. Corporations can raise money for operations by issuing equity or debt. Making shares of stock available for purchase by investors is equity financing, since the investor gives the corporation money in exchange for a percentage of ownership in the company. When a corporation uses debt to finance operations, it issues bonds. Bonds are loan notes that pay the investor periodic interest and repay the principal of the loan at maturity.
Ordinarily, stocks and bonds are two totally different types of corporate securities. Convertible bonds bridge the divide between the two instruments. The holder of convertible bonds can trade them in for stock. Basically, convertible bonds are an option to convert a loan to the corporation that must be repaid into an equity position that does not have to be repaid.
A corporation will typically issue convertible bonds to protect its public image. When a corporation issues additional stock to raise money, it sometimes has a detrimental impact on the corporation's stock price. Issuing convertible bonds that can be quietly traded in for stock at a later date avoids this potential impact. Read more about convertible bonds from the links on this Business.com page.