reverse convertible

reverse convertible definition - finance
A security linked to a share of stock that gives the bearer the right to cash a dividend coupon whose yield is higher than the market rate. The bearer also receives either the face value of the convertible or a number of shares that were guaranteed at the time when the original investment was purchased. Reverse convertibles typically mature within six months to one year.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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