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Supporting the Price of a Commodity by Buying It When

question 3

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Supporting the price of a commodity by buying it when its price is low is:


Definitions:

Convertible Bonds

Convertible bonds are a type of bond that can be converted into a predetermined number of the company's equity shares at certain times during the bond's life, usually at the discretion of the bondholder.

Conversion Premium

The extra amount over the current value of the underlying asset that convertible security holders pay when converting into common stock.

Convertible Bond

A type of bond that can be converted into a predetermined number of shares of the issuing company's stock, at certain times during its life, usually at the discretion of the bondholder.

Conversion Price

The predetermined price at which convertible securities can be exchanged for a specified number of shares.

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