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Conversion premium |
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Conversion 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 premium Similar MatchesConversion termsConversion termsThe terms which apply when convertible loan stock, for example, a bond or a debenture, are converted into ordinary shares or preference shares. These would include the price and date of conversion which are fixed at the issue date.The terms which apply when a warrant is converted into shares. These would include the exercise price, the date or period of conversion and the number of shares (normally one per warrant) which the warrant holder would be entitled to purchase. Conversion 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. 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. Conversion parity or valueConversion 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 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 SuggestionsConversion ratioconversion Conversion parity Conversion Period Involuntary Conversion Conversion value Stated conversion price Limitation on conversion conversion arbitrage Conversion Conversion parity price Conversion ratio Conversion factors Reverse conversion currency conversion |
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