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Meaning / Definition of

Convertible Bond

Categories: Stocks, Bonds and Treasuries, Investing and Trading,

convertible bonds are corporate bonds that give you the alternative of converting their value into common stock of that company or redeeming them for cash when they mature. The details governing the conversion, such as the number of shares of stock you would receive, are set when the bonds are issued. A convertible bond has a double appeal for investors: Its market value goes up if the stock price rises, but falls only to what it would be as a conventional bond if the stock prices falls. In other words, the upside potential is considered greater than the downside risk. While convertible bonds typically provide lower yields than conventional bonds from the same issuer, they may provide higher yields than the underlying stock. You can buy convertibles through a broker or choose a mutual fund that invests in them.

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Definition / Meaning of

Office Of Compliance Inspections And Examinations (OCIE)

Categories: Estate Planning, Brokerages,

The Office of Compliance Inspections and Examinations ("OCIE") protects investors through administering the SEC's nationwide examination and inspection program. Examiners in Washington DC and in the Commission's 11 regional offices conduct examinations of the nation's registered entities, including broker-dealers, transfer agents, investment advisers, investment companies, the national securities exchanges, clearing agencies, the nationally recognized statistical rating organizations ("NRSRO"s), SROs such as the financial industry regulatory authority ("FINRA") and the municipal securities rulemaking board, and the public company accounting oversight board ("PCAOB"). OCIE's mission is to protect investors, ensure market integrity and support responsible capital formation through risk-focused strategies that: (1) improve compliance; (2) prevent fraud; (3) monitor risk; and (4) inform policy. The examination program plays a critical role in encouraging compliance within the securities industry, which in turn also helps to protect investors and the securities market(s) generally.

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