Course curriculum

    1. 1905 Convertible Securities

    2. 1910 Warrants

    3. 1915 Derivative Securities

    1. 1911 Warrants Intrinsic Value & Speculation Premium

    2. 1913 Warrants Break Even Price

    3. 1916 Convertible Bond Conversion Value & Conversion Premium

    4. 1917 Convertible Bond Price & Conversion Value

    5. 1919 Convertible Bond on Exchange

    6. 1920 Convertible Bond Pure Bond Value vs Market Price Prob. 1

    7. 1921 Convertible Bond Pure Bond Value vs Market Price Prob. 2

    8. 1922 Convertible Bond Change in Price & Conversion Premium

    9. 1923 Convertible Bond Crossover Point – Conversion Value Equals Pure Bond Value

    10. 1924 Convertible Bonds & Call Feature

    11. 1925 Convertible Bond Sale, Gain, & Rate of Return

    12. 1926 Warrant vs Stock Price % Increase

    13. 1927 Warrant Exercise & Rate of Return Calculations

    14. 1928 Exercise Warrant Gain vs Common Stock Gain

    15. 1929 Warrant Gain vs Stock Gain – Same Investment Amount

    16. 1930 Convertible Bonds & Diluted Earnings Per Share

    17. 1931 Convertible Bonds - Pure Bond value Impact vs Conversion Value Impact on Price

    18. 1933 Convertible Bonds Pure Bond Value & Falling Stock Price

    1. 1911 Warrants Intrinsic Value & Speculation Premium

    2. 1913 Warrants Break Even Price

    3. 1916 Convertible Bond Conversion Value & Conversion Premium

    4. 1917 Convertible Bond Price & Conversion Value

    5. 1919 Convertible Bond on Exchange

    6. 1920 Convertible Bond Pure Bond Value vs Market Price Prob 1

    7. 1921 Convertible Bond Pure Bond Value vs Market Price Prob 2

    8. 1922 Convertible Bond Change in Price & Conversion Premium

    9. 1923 Convertible Bond Crossover Point – Conversion Value Equals Pure Bond Value

    10. 1924 Convertible Bonds & Call Feature

    11. 1925 Convertible Bond Sale, Gain, & Rate of Return

    12. 1926 Warrant vs Stock Price % Increase

    13. 1927 Warrant Exercise & Rate of Return Calculations

    14. 1928 Exercise Warrant Gain vs Common Stock Gain

    15. 1929 Warrant Gain vs Stock Gain – Same Investment Amount

    16. 1930 Convertible Bonds & Diluted Earnings Per Share

    17. 1931 Convertible Bonds Pure Bond Value Impact vs Conversion Value Impact on Price

    18. 1933 Convertible Bonds Pure Bond Value & Falling Stock Price (1)

About this course

  • $15.00
  • 39 lessons
  • 5.5 hours of video content

Description

This course will cover convertible securities. We will discuss convertible bonds, warrants, & derivative securities.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

Convertible securities are securities that can be converted from one asset type into another asset type. Convertible bonds are one of the most common types of convertible securities. Convertible bonds have the option, but not the obligation, for a bondholder to convert the bond to some number of stocks.

The conversion feature in convertible securities makes them more difficult to value then other securities. For example, we can attempt to value a convertible bond by calculating the value of the related stock it could be converted into or by valuing bonds of a similar class which do not have a conversion option.

Warrants are an option to buy a set number of shares of common stock at a specified price over a given time.

Derivative securities are financial instruments whose value depends upon the value of another asset. Common examples of derivative securities are futures, forwards, options, and swaps.