Convertible [Note] [Debenture] A debt instrument that automatically or voluntarily converts to some other security, either debt or equity. Convertible Preferred Shares Preferred shares that may be converted into common shares or another class of preferred shares, either voluntarily or mandated. Convertible Security A bond, debenture or preferred stock that is exchangeable for another type of security (usually common shares) at a pre-stated price. Convertibles are appropriate for investors who want higher income, or liquidation-preference protection, than is available from common shares, together with greater appreciation potential than regular bonds offer. (See common shares, dilution and preferred shares). Corporate Resolution A document stating that the corporation’s board of directors has authorized a particular individual to act on behalf of the corporation. Corporate Venturing Venture capital provided by [in-house investment funds of] large corporations to further their own strategic interests. Corporation A legal, taxable entity chartered by a province or the federal government. Ownership of a corporation is held by the shareholders.
Covenant A protective clause in an agreement.
Cumulative Preferred Shares Shares having a provision that if one or more dividend payments are omitted, the omitted dividends (arrearage) must be paid before dividends may be paid on the company’s common shares.
100 A Practical Guide to Angel Investing: How to Achieve Good Returns
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