Convertible Bond

A Convertible Bond is a hybrid fixed-income security that grants the holder the right, but not the obligation, to convert the bond into a specified number of shares of the issuing company's common stock at a predetermined conversion price, offering investors the safety of debt with the potential for equity-like capital appreciation. This structure provides downside protection through regular interest payments and principal repayment at maturity, while allowing participation in the issuer's stock price growth, making it a popular financing tool for growth-oriented companies, especially in the technology and digital asset sectors.