exchangeable bond

exchangeable bond definition - business

exchangeable bond

A special type of convertible security that permits the holder to exchange the bond for shares of a company in which the issuer has an ownership position. An exchangeable bond differs from an ordinary convertible bond in that a convertible permits the holder to convert it into shares of stock of the issuer.

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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