Convertibility Clause

Business, Legal & Accounting Glossary

Definition: Convertibility Clause


Convertibility Clause


Full Definition of Convertibility Clause


1. A provision that can be found on some bonds allowing the bondholder to exchange their debt into common stock. The resulting number of shares is specified in this provision as well. 2. A provision that can be found on some adjustable rate mortgages allowing the borrower to switch over to a fixed-rate mortgage. The exact terms of converting tend to vary with each mortgage, but can be found in this clause.


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Definition Sources


Definitions for Convertibility Clause are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.