Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
Refers to the notion that convertible preferred stock might convert into so many shares of common. So lets say you have par value $25,000 in a preferred stock. It converts into 1,000 shares of common. So if the common is above about 25 bucks, you'd want to convert. Hal E. Lujah.