Convertible Shares

A reduction in the ownership percentage of a shareholder due to the issuance of new shares in the company. As new shares are issued, the proportion of the company each shareholder owns decreases, potentially affecting their control, influence, and value of their investment.

During mergers and acquisitions (M&As), buyers may choose to purchase a company’s underlying assets instead of its stock (shares). These transactions are called asset deals.

Treasury stock is the portion of shares that a company itself owns. It’s separate from any shares being owned by investors, including individuals who are officers or employees of the company.