equity kicker

equity kicker definition - business

equity kicker

An addition to a fixed-income security that permits the investor to participate in increases in the value of equity ownership. Two common types of equity kickers are a convertible feature on some bonds that allows the bonds to be exchanged for shares of stock, and warrants to purchase stock that are sold in combination with some new bond issues.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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