how does a convertible preferred share differ from a convertible bond 
both convertible preferred shares and convertible bonds can be converted into common shares but they differ in several key ways convertible bonds like any bonds are debts that gives the owners of convertible preferred bonds priority over the owners of convertible preferred shares in the event of bankruptcy or liquidation both have priority over holders of common stock convertible preferred shares typically pay a fixed cash dividend out of a company s retained earnings convertible bonds pay a coupon rate which is a periodic interest payment finally most convertible bonds have a specified maturity date while convertible preferred shares can exist as long as the company remains a going concern 