|
|
Conversion factors |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Conversion factorsRules set by the Chicago Board of Trade for determining the invoice price of each acceptable deliverable Treasury issue against the Treasury Bond futures contract.Conversion factors Similar MatchesConversion ratioConversion ratioApplies mainly to convertible securities. Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred stock when a conversion takes place. It is determined at the time of issue and is expressed either as a ratio or as a conversion price from which the ratio can be figured by dividing the par value of the convertible by the conversion price. Involuntary ConversionInvoluntary ConversionConversion of real property to personal property (money) without the voluntary act of the owner. This occurs when property is taken by eminent domain (condemnation). The owner is allowed to convert back to real property (buy another property) without paying tax on the gain from the condemnation. This must be done within a set time (3 years) and the prices of the old and new property are considered to form a new tax base. Equitable ConversionEquitable ConversionA legal fiction applied to a land contract which treats the vendee's (buyer's) interest as a real property interest even though the seller holds legal title, and the seller's interest as a security interest (personal property). This enables the buyer to act as the "owner" of the property without having "legal" title. 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. 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. Further SuggestionsConversion parityconversion arbitrage Conversion feature currency conversion Limitation on conversion conversion Conversion price Conversion ratio Conversion parity or value Conversion Period Conversion parity price Stated conversion price conversion terms Conversion Conversion value |
|
|
|