In this first session in our series, we will briefly define what a convertible security is, and tell you about The Value Line Convertibles Survey . During the period of the life of the bond, a fixed income at a stated rate of interest is paid semi-annually in most cases, or annually in some cases, to the holder. With a preferred share, things are a bit different. A stated amount of dividend is paid quarterly in most cases, and the life of the preferred is usually perpetual. The Value Line Convertibles Survey was founded in 1971 and has been published continuously since then.
Many individual investors use the publication as well.
Our results have often been among the top investment letters for investment performance studied by the Hulbert Financial Digest . In addition to the more than 600 convertibles followed and evaluated each week, the service also follows and evaluates 120 warrants. Unlike convertibles, which are relatively low in risk, warrants, which are somewhat like options, can be very risky. They offer greater profit potential, but their prices can swing sharply. The Value Line Convertibles Survey is published 48 times a year and comes in two parts.