But the more you invest, the more you have to worry about falling into the abyss one of these days.
Convertibles are a little tricky, but they offer potentially rich rewards.
On one level a convertible is a bond. Another type of convertible securities, known as convertible preferreds, typically have no maturity date but are also redeemable by the issuing corporation. If the stock skyrockets, you can convert and reap much of the benefit of the stock's run-up. In general, a convertible trades at a higher price than the stock does. There is a snag.