What Is Mandatory Convertible Preferred Stock and How It Works

Mandatory convertible preferred stock is a type of hybrid security that combines elements of debt and equity.

It's a unique investment instrument that offers a higher yield than traditional debt, but with a twist - it automatically converts into common stock at a predetermined time or event.

This conversion feature can be triggered by a specific date, a company's IPO, or even a change in control.

Mandatory Convertible Preferred Stock is a type of security that automatically converts to common equity on or before a predetermined date.

This means that preferred shareholders must convert their shares to common stock at a specified date, similar to mandatory convertible bonds. The issue price of the mandatory convertible preferred stock at the time of issuance equals the price of the common stock.

The conversion ratio might be stipulated instead, which is the number of shares that an investor can expect to have each par value bond converted into. This ratio changes depending on the issuing company's stock price.

The application of mandatory convertible preferred shares is similar to that of mandatory convertible bonds, which guarantees a certain return up to the conversion date, after which there is no guaranteed return but the possibility of a much higher return.

A convertible is a type of bond that gives the holder the option to convert it into the underlying common stock of the company that issued it.

In the case of a mandatory convertible, the conversion is not optional - the holder must convert it into common stock on or before a contractual conversion date.

A mandatory convertible is a type of convertible bond that has a required conversion or redemption feature, rather than the convertible feature being an option.

The holder of a mandatory convertible bond must convert it into the underlying common stock, which means they'll receive a certain number of shares of stock in exchange for their bond.

This can be a good option for investors who want to gain exposure to the company's stock without having to buy shares directly.

Mandatory convertible preferred stock is a type of security that automatically converts into common stock on a predetermined date. This date is July 1, 2021, for Fortive Corporation's 5.00% Mandatory Convertible Preferred Stock, Series A.

The conversion rate for each share of this preferred stock is 14.0978 shares of common stock. Cash will be paid in lieu of fractional shares of common stock. This means that if you own a portion of a share, you'll receive the cash equivalent instead of a fraction of a share.

A mandatory convertible is a hybrid security that guarantees a certain return up to the conversion date. After that, there's no guaranteed return, but the possibility of a much higher return.

The issue price of the mandatory convertible equals the price of the common stock. The conversion price is the price at which the debt securities are convertible into common stock at a premium to the issue price upon maturity.

Apollo's Mandatory Convertible Preferred Stock is a type of security that will automatically convert into common stock on a specified date.

The conversion date for Apollo's Mandatory Convertible Preferred Stock is July 1, 2021.

Holders of record at the close of business on June 15, 2021 will receive a final quarterly cash dividend of $12.50 per share.

The conversion rate for each share of Apollo's Mandatory Convertible Preferred Stock is 14.0978 shares of common stock.

Cash will be paid in lieu of fractional shares of common stock.

The conversion date for mandatory convertible preferred stock can be a crucial piece of information for investors. July 1, 2021, is the automatic conversion date for Fortive Corporation's 5.00% Mandatory Convertible Preferred Stock, Series A.

On this date, each share of Preferred Stock will convert into 14.0978 shares of the Company's common stock. Cash will be paid in lieu of fractional shares of common stock.

Holders of record at the close of business on June 15, 2021, will receive a final quarterly cash dividend of $12.50 per share on the Preferred Stock.