The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

In Reference To The Stock Market , What Are Convertible Securities ?

Convertible securities are bonds or preferred stocks that may be converted (exchanged) into common stock of the issuing company within a specified time period for a specified number of shares. Convertible securities offer a Mutual Fund a way to participate in the capital appreciation of the common stock into which the securities are convertable, while earning higher current income than is available from the common stock.

If you need professional help with "Investments & Financial Planning" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.