exchangeable

Applies mainly to convertible securities ( convertible security). Means the issuer, if so stated, may substitute a convertible debenture for an existing convertible preferred with identical terms. Most often used when a corporation has an immediate need for equity capital and a low tax rate, and expects either or both conditions to change. This would make the debenture less attractive if the interest tax-deductibility ( deductible) is lost. Bloomberg Financial Dictionary

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exchangeable ex‧change‧a‧ble [ɪksˈtʆeɪndʒəbl] adjective

if something is exchangeable, it can be given to someone who will give something back in return:

exchangeable for

• Each bond is priced at FFr680 and is exchangeable for one share from July 1 next year.

exchangeable into

• When people lend dollars, they lend because they trust that they will be repaid in money that will be exchangeable into goods.

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exchangeable UK US /ɪksˈtʃeɪndʒəbl/ adjective

► FINANCE able to be exchanged by its owner for something else: exchangeable for sth »

The bonds will be exchangeable for shares or cash.

exchangeable into sth »

Drachma continued to be exchangeable into Euros until 2004.

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exchangeable bonds/shares/securities