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Conversion arbitrage |
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Conversion arbitrageThe simultaneous purchase of a stock, the purchase of a put, and the sale of a call, creating a riskless transaction.Similar MatchesConversion priceConversion priceApplies mainly to convertible securities. Dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock, as specified when the convertible is issued. Conversion premiumConversion premiumThe extent by which the conversion price of a convertible security exceeds the prevailing common stock price at the time the convertible security is issued. Conversion ratioConversion ratioThe rate at which people complete the desired transaction after clicking on a link, viewing an ad, etc. Expressed in terms of the total transactions completed divided by the total number of site visits or ad views. Stated conversion priceStated conversion priceAt the time of issuance of a convertible security, the price the issuer effectively grants the securityholder to purchase the common stock, equal to the par value of the convertible security divided by the conversion ratio. Reverse conversionReverse conversionA technique in which brokerage firms earn interest on the stocks they hold for their customers by selling the short and investing the proceeds in money market accounts. The short positions are hedged to protect against adverse market conditions. Further SuggestionsInvoluntary Conversionconversion terms conversion Conversion feature currency conversion Conversion parity or value Conversion Limitation on conversion Conversion factors Conversion value Conversion Period Conversion parity Equitable Conversion Conversion ratio Conversion parity price |
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