FINRA Glossary of Terms

Convertible
A corporate bond or preferred stock that may be exchanged for common shares
Soft-call – A provision in a convertible security that permits the issuer to redeem if the share price trades at a specifies threshold price

E&P Clients
Oil exploration and production clients

Warrant Dividend
A pro-rata distribution to all shareholders of a warrant to purchase new common shares

3a-9
An exemption from registration as defined in the Securities Act

4a-2
An exemption from registration as defined in the Securities Act

Conversion Graft
The addition of conversion features into a corporate high yield bond

Bond Hedge
Call options purchased and or issued by an issuer of a convertible bond designed to increase the effective conversion premium