Convertible Stock

Convertible stock is a sophisticated form of equity ownership with a corporation. It entitles the owner to convert the certificate to common stock or preferred stock based on some trigger. The various forms of triggers include dates, financial performance, project completion, or conversion of some other security instrument.

Stock

Stock

The one single term mostly equated to capitalism is ‘Stock’. When a business is incorporated, stock is the core medium of exchange for the investment. The company issues a certificate referred to as stock in exchange for the investment – most often cash. This is the one true form of pure risk. Most other forms of investments generally have some form of collateral, credit, or cash flow to substantiate the investment.

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