Summary of Convertibility

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Summary of Convertibility

For some investors, convertible securities represent the perfect middle road. As Goldilocks might say, "They’re less volatile than common stock, but offer more earnings potential than preferred stocks or bonds. Convertibles are just right." If you are seeking to balance risk and reward, convertibles may be right for you, too.

However, you should consider the suitability of convertible securities in your portfolio and to your investment goals and risk tolerance. Convertible securities are available as individual issues or bundled in mutual funds.

Practical Ideas I Can Start with Today

  • Contact a broker, bond dealer, investment advisor, or specific corporations to learn about buying convertible bonds or stocks.

What you have learned

  1. What Are Convertible Securities?
  2. Why Do Corporations Issue Convertible Securities?
  3. Why Do Investors Buy Convertible Securities?
  4. What Do Investors Get on Conversion of Convertible Securities?

Find out what you have learned