What are Hybrid Securities?

Hybrid securities are cocktails of financial markets; they are those securities or financial products that combine the features of both equity and debt. A hybrid security would pay fixed dividend which represent interest like bond but only up to certain point of time after which it may converted into stock and therefore return on it would depend on the price of stock prevailing at that point of time.

1 comment… add one
  • Sanel

    Interesting topic
    I would have like to see an example with scenarios and calculation.



Leave a Comment

Related pages

profitability ratios formulasdefine process costingunbilled revenue accountingmonopoly and oligopolyasset revaluation journal entrymerits and demerits of internetveblen goods examplesvertical analysis for balance sheetdisadvantage of social networkingcapitalism advantagesentry for bad debtsadvantages and disadvantages of commodity exchangeeconomic system of socialismebit accountingdisadvantages of horizontal analysisdefine conglomerate integrationwhat is law of diminishing returns in economicsadvantages and disadvantages of bank overdraftfeature of monopolistic competitionpenetration pricing examplescrossing of chequesorder and bearer chequeupselling examplesthe merits and demerits of internetabsolute advantage formulaprepaid expenses journal entryconsignees meaningfictitious assets wikipediadividend investopediatraditional economy definition examplepublic goods pptwhat are disadvantages of globalizationdefine unsystematicindirect quotation exchange ratewhat is meant by consigneewhat is the full form of ipotypes of factoring methodsfreight means in hindidiscounting bills of exchangethe autocratic leadership styleconglomerate mergeradvantages and disadvantages of globalizationurbanization meaning in hindiunitary elasticity examplegaar meaningmonopoly price makercharacteristics of private goodsadvantages of cash flow statementterm loan and overdraftdisadvantages of monopolypositives of urbanizationcapitalist economy advantagesadvantages of variable costingtypes of factoring in financereturn outwardslimitation of payback periodjain irrigation dvr stock pricefeatures of monopolistic competition in economicsdefine direct expensewhat is bill discounting in bankingadvantages dictatorshipadvantages and disadvantages of capitalist economydebentures as a source of financeskimming pricing strategymeaning of drawee and drawermixed economy advantagesunitary elastic demand graphwhat is oligopoly marketescrow account meaningadvantage of autocratic leadershipdeferred income journal entryskimmed pricingadvantages of pricing strategiesmarket skimming pricing strategyprofitability ratios listdefine dupont analysis