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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 MatchesLimitation on conversionLimitation on conversionApplies mainly to convertible securities. Possible delay in convertibility. More frequently, the right to convert may be terminable prior to a redemption date, preventing the holder from receiving a final coupon or dividend. See: Accrued interest. 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. 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. 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 featureConversion featureSpecification of the right to transform a particular investment to another form of investment, such as switching between mutual funds or converting preferred stock or bonds to common stock. Further SuggestionsReverse conversionConversion price Conversion ratio Conversion parity Conversion ratio Conversion Period Equitable Conversion Conversion Conversion parity price conversion currency conversion conversion arbitrage conversion terms Conversion factors Conversion value |
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