Exchangeable - Mainly applies to convertible securities. Right of an issuer, if so stated, to exchange a convertible debenture for an existing convertible preferred with identical terms. Most often used if a corporation has an immediate need for equity capital and has a currently low tax rate, and thus expects either or both conditions to change. This would make the debenture less attractive due to the interest tax deductibility being lost.
Exchangeable : mainly applies to convertible securities. right of an issuer, if so stated, to exchange a convertible debenture for an existing convertible preferred with identical terms. most often used if a corporation has an immediate need for equity capital and has a currently low tax rate, and thus expects either or both conditions to change. this would make the debenture less attractive due to the interest tax deductibility being lost.
Exchangeable