What is 'convertible bond' in SAP FIN-FSCM-TRM-TM - Transaction Manager?

convertible bond - Overview

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: A bond that can be converted to stock of the respective issuer within a certain period. In addition to the ordinary bond characteristics, the class master data for convertible bonds contains the following: Conversion period Conversion ratio - the ratio of the nominal bond value to the number of stocks to be received if the bond is converted Premium to be paid upon conversion to acquire the stocks

convertible bond - Details

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  Key Concepts: 
  A convertible bond is a type of debt security issued by a company that can be converted into equity shares of the company at a predetermined price and date. It is a hybrid security that combines features of both debt and equity. The issuer of the bond has the option to pay interest to the bondholder in cash or in the form of additional bonds.
  
  How to use it: 
  The SAP Transaction Manager (TM) module is used to manage convertible bonds. It provides tools for creating, managing, and monitoring convertible bonds. It also provides tools for calculating interest payments, tracking bond performance, and managing the conversion process.
  
  Tips & Tricks: 
  When using the SAP Transaction Manager module, it is important to keep track of all transactions related to convertible bonds. This includes tracking interest payments, monitoring bond performance, and managing the conversion process. Additionally, it is important to ensure that all transactions are properly recorded in the system.
  
  Related Information: 
  The SAP Transaction Manager module is part of the Financial Supply Chain Management (FSCM) suite of applications. It is closely related to other FSCM modules such as Treasury Management (TRM) and Cash Management (CM). Additionally, it can be integrated with other SAP modules such as Materials Management (MM) and Sales & Distribution (SD).