Convertible securities are "products" that can be converted into other securities. The conversion is carried out under conditions and at predetermined prices on the issue date. Several types of convertible securities are traded on the TASE, including option warrants and convertible bonds.
There are two main types of convertible securities:
- Warrants: Convertible securities that allow the purchase of a share in two installments - at the time of the purchase and upon its realization (conversion) per share. The option gives the holder the right to purchase a share at a predetermined price published in the company's prospectus ("the exercise price").
- Convertible bonds are, in effect, a bond combined with an option that is convertible into a stock.
