What Are Convertibles? Convertibles are securities, usually bonds or preferred shares, that can be converted into common stock. Convertibles are most often associated with convertible bonds, which allow bondholders to convert their creditor position to that of an equity holder at an agreed-upon price.
Why is it called a convertible?
The term cabriolet originated from a carriage cabriolet: "a light, two-wheeled, one-horse carriage with a folding top, capable of seating two persons"; however, the term is also used to describe other convertibles.
Is a convertible a sports car?
The Merriam-Webster dictionary defines a sports car as a low, small car with seating for two people and made for fast driving. ... While Convertible sports cars are certainly among the most coveted of the breed, a folding roof isn't an absolute requirement. But it certainly adds some fun to the experience.