{"id":3428,"date":"2020-12-11T07:29:37","date_gmt":"2020-12-11T01:59:37","guid":{"rendered":"https:\/\/staging.trica.co\/equity\/blog\/?p=3428"},"modified":"2022-07-01T04:29:29","modified_gmt":"2022-07-01T04:29:29","slug":"convert-securities-at-the-click-of-a-button","status":"publish","type":"post","link":"https:\/\/trica.co\/equity\/blog\/us\/convert-securities-at-the-click-of-a-button\/","title":{"rendered":"Convert securities at the click of a button"},"content":{"rendered":"

Early-stage startups sometimes raise money via convertible securities if they\u2019re not ready to firmly establish their valuation, or are between rounds of funding, or have a need to raise money relatively quickly. Investors use these convertible securities to essentially buy time until a priced equity round occurs, which will inform how the investment amount translates into shares in the company. Basically, convertible shares are financial securities that investors can convert to equity after the completion of a predetermined condition. The option to convert these securities into equity gives investors the opportunity to gain from a rise in the share price.<\/span>
\nConvertibles are particularly attractive to those investors who want to participate in the rise of high-growth companies while being insulated from a drop in price when stocks fall down.\u00a0<\/span>
\nWhat are the different types of convertible securities?<\/b>
\n<\/b>There are 2 types of convertible securities:\u00a0<\/span><\/p>\n