Definition

A bond that can be converted into equity.

Common Uses

- Used in capital markets for disclosure, valuation, and investor communication.
- Used when interpreting securities, filings, and market indicators.

Practical Example

- Example: Investors reference **Convertible bond** when assessing risk/return and interpreting public disclosures.

Why This Term Matters

- Why it matters: Improves transparency for investors and supports pricing, funding, and governance decisions.