FINRA Glossary of Terms
Convertible
A corporate bond or preferred stock that may be exchanged for common shares.
Soft-call: A provision in a convertible security that permits the issuer to redeem if the share price trades at a specified threshold price.
E&P Clients
Oil exploration and production clients
Warrant Dividend
A pro-rata distribution to all shareholders of a warrant to purchase new common shares.
3a-9
An exemption from registration as defined in the Securities Act
4a-2
An exemption from registration as defined in the Securities Act
Conversion Graft
The addition of conversion features into a corporate high yield bond.
Bond Hedge
Call options purchased and or issued by an issuer of a convertible bond designed to increase the effective conversion premium.