Exchangeable instrument

Definition:

Applies mainly to convertible securities. Bond or preferred stock that may be exchangeable into the common stock of a different public corporation.

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Asset swap

An interest rate swap used to alter the cash flow characteristics of an institution's assets in order to provide a better match with its liabilities.

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