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Finance
Convertible Bond
A bond that can be turned into company stock if the stock price rises.
Convertible bonds give investors safety (regular interest) plus upside potential if the company grows fast. The company gets lower interest rates because of that extra feature.It's like buying a ticket that lets you watch the concert or trade it for a backstage pass if the band gets really famous.
Real world: A startup issues convertible bonds. If the company does well and the stock skyrockets, bondholders can convert to shares and make way more money.
💡 Convertible bonds are a smart middle ground — some safety plus a lottery ticket if the company hits it big.