Difference between revisions of "ACO"

Revision as of 19:18, 27 August 2020

ACO

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-In finance, a convertible [[Bonds|bond]] is an asset the holder can convert into shares of common stock in the issuing company or cash of equal value, at an agreed-upon price. An Automatic Convertible Bond has some unique properties:
+ACO
-* The holder of an ACO would get at an upfront agreed discount at the initial product offering ([[IPO|IPO]])
-* The holder gets a guarantee to get the stock
-* The holder gets a minimum buying price or a maximum price.
-ACO was discussed in the MBI training in the context of the [[M10-S2 - Case - Lernout and Hauspie Speech Products|Lernout and Hauspie Speech Products case]]. As there is a minimum and a maximum scenario the holder of an ACO has a significant uplift or downlift. The reason for including this range is to communicate an expected price for the IPO.
-<html>
-<audio controls><source src="/static/files/MBI/Module%2010/M10-S2%20-%20Explanation%20ACO.mp3"type ="audio/mp3"/></audio>
-</html>
-See also: http://en.wikipedia.org/wiki/Convertible_bond
 [[Category:mbi]]