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Stocks

Convertible Security

In the world of finance, we often come across the term "convertible security". This refers to a type of security, such as bonds, debentures, or preferred shares, that can be converted into other securities of the same issuer. This conversion is usually based on predetermined terms, and can be initiated by either the holder of the security or the issuer. This feature provides flexibility and can be beneficial for both parties involved.
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