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Conversion parity or value |
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Conversion parity or valueApplies mainly to convertible securities. Common stock price at which a convertible bond can become exchangeable for common shares of equal value; value of a convertible bond based solely on the market value of the underlying equity. Par value + conversion ratio. See bond value, investment value, parity.Conversion parity or value Similar MatchesConversion valueConversion valueThe value of a convertible security if it is converted immediately. Also called parity value. 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 PeriodConversion PeriodThe time period during which an investor can exchange a convertible security for common stock. 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. ConversionConversionIn the context of securities, refers to the exchange of a convertible security such as a bond into stock. In the context of mutual funds, refers to the free exchange of mutual fund shares from one fund to another in a single family. Further SuggestionsEquitable ConversionConversion ratio Conversion feature conversion arbitrage conversion terms Stated conversion price Conversion ratio Conversion parity Conversion parity price Conversion factors conversion currency conversion Involuntary Conversion Limitation on conversion Conversion price |
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