Investments & Financial Planning

In reference to the stock market , what are Convertible securities ?

Convertible securities are bonds or preferred stocks that may be converted (exchanged) into common stock of the issuing company within a specified time period for a specified number of shares. Convertible securities offer a Mutual Fund a way to participate in the capital appreciation of the common stock into which the securities are convertable, while earning higher current income than is available from the common stock.

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