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Convertible Preferred Equity Definition from Financial ...

Venture capitalists (VC) frequently use convertible equity to invest in startups. Convertible preferred equity blends features of debt and equity into a single security. Typically, the initial investment is structured as a debt claim, earning interest that accrues unpaid by the company.

At the discretion of the venture capitalist, the debt can be converted into equity at a conversion price...

Related topics : company loan agreement / company loan

Long-Term Refinancing Operation - Ltro Definition from ...

The European Central Bank's long-term refinancing operation is a process by which the ECB provides financing to eurozone banks. The stated aim of the LTRO is to maintain a cushion of liquidity for banks holding illiquid assets, and thus prevent interbank lending and other loan origination from seizing up as they did in the credit squeeze of 2008.

The ECB also provides liquidity to banks through...