Convertible securities are convertible bonds or preferred stocks that pay regular interest and can be converted into shares of common stock.
Options give the owner the right, but not the obligation, to buy or sell an underlying asset or instrument.
A warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiration date.
A derivative is a financial instrument whose value is based on one or more underlying assets.
Derivatives allow risk related to the price of underlying assets, such as commodities, to be transferred from one party to another.
