Editing Convertible security (section)

==Disadvantages to the investor==
Most convertibles contain a call provision that allows the issuer to force conversion to the common stock.<ref>{{cite book |title=Fabozzi op cit |page=374}}</ref> Such a provision limits the value associated with potential growth in the stock price.

Convertibles typically have a lower [[Yield (finance)|yield]] than a nonconvertible, because the investor is receiving an additional right: that of conversion to the underlying stock. However, if the issuer's business does not grow and prosper, the investor has an [[opportunity cost]] associated with lost current yield compared to a nonconvertible, and a capital loss if the convertible security's price drops below the price the investor paid to purchase it.<ref>{{cite book |title=Ritchie op cit |page=293}}</ref>