what is loan stock 
loan stock refers to shares of common or preferred stock that are used as collateral to secure a loan from another party the loan earns a fixed interest rate much like a standard loan and can be secured or unsecured a secured loan stock may also be called a convertible loan stock if the loan stock can be directly converted to common shares under specified conditions and with a predetermined conversion rate as with an irredeemable convertible unsecured loan stock iculs understanding loan stock