Worst Of Reverse Convertible on 3 Stocks 2025

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Risk of dilution: EPS or Earning Per Share rate of the stocks of a company go down when it introduces convertible securities. This can lead to further difficulties for the company in availing any line of credit from a financial institution for themselves in the future.
There are two primary parts to a reverse convertible note: a put option and a debt instrument. When a note is purchased, the buyer is giving the RCNs issuer the opportunity to provide him or her with the underlying asset in the future.
A reverse convertible bond (RCB) is a bond that can be converted to cash, debt, or equity at the discretion of the issuer at a set date. The most significant advantage of RCBs is their high coupon rates. RCBs have complicated features that protect sophisticated bond issuers at the expense of less-informed investors.
In addition, the investor is also subject to the risk that the reference asset may perform sufficiently poorly, and in doing so result in a payment at maturity lower in value than the value initially invested.