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Conversion |
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ConversionIn 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.ConversionThe process by which a mutual organisation such as a building society changes itself into a company. Quite often accompanied by healthy payouts to members of the building society, which has attracted the interest of carpetbaggers. Also known as 'demutualisation'.The process of converting convertible loan stock in a company into ordinary shares. The right to convert is inherent in the convertible loan stock but usually you will only be allowed to convert on a particular date. The company will issue a notice to shareholders telling them when they can convert and telling them the applicable conversion ratio e.g. i.e. how many ordinary shares they can get for each unit of convertible loan stock.Similar MatchesConversion factorsConversion 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 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 parity priceConversion parity priceRelated: Market conversion price Conversion parityConversion paritySee: Market conversion price Conversion 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. Further SuggestionsConversion priceInvoluntary Conversion conversion arbitrage Conversion premium Conversion value Conversion ratio currency conversion Reverse conversion Stated conversion price Equitable Conversion Limitation on conversion Conversion Period Conversion feature conversion terms |
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