Dictionary
Thesaurus
Encyclopedia
Translator
Web

residual security

 - 2 dictionary results
Financial Dictionary

Residual Security

Another way to describe convertibles.

Investopedia Commentary

The term residual comes from the fact that convertibles dilute earnings.

See also: Convertible Bond, Convertible Debenture, Diluted EPS

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Financial Dictionary

residual security

A security with the potential for diluting earnings per share. A convertible bond is a residual security because conversion of the bond by an investor will result in more shares of common stock outstanding and a reduction in earnings per share.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
Cite This Source
Search another word or see residual security on Thesaurus | Reference
FacebookTwitterFollow us: