Definition of Reverse Convertible Bond

Financial Terms Beginning with R

What is a Reverse Convertible Bond

A reverse convertible bond is a debt security that contains a provision which gives the bond issuer, not the owner, the right to exchange the bond for a specific number of shares in a different security, usually common stock, in that company.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Bearer Bond

Convertible Security

Face Value

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