释义 |
DictionarySeeoverhangingEncyclopediaSeeOverhangingOverhanging Bond
Overhanging BondA concertible bond issue that investors do not convert into common stock because the stock has not appreciated in value.Overhanging BondA convertible bond whose bondholders do not exercise the convertible option to turn it into common stock because it is currently trading at too low a price. Overhanging bonds therefore act like normal debt securities. This is considered a low risk investment with the possibility of high return, because an overhanging bond usually has a fixed return, and there is a small chance that the stock will recover, allowing the investor to exercise the convertible option. See also: Busted convertible. |