Equitable 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 PeriodConversion Period
The time period during which an investor can exchange a convertible security for common stock.
Conversion priceConversion price
Applies 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.
Conversion featureConversion feature
Specification 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.
Reverse conversionReverse conversion
A 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.
In 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 SuggestionsConversion ratio
Conversion parity or value
Stated conversion price
Limitation on conversion
Conversion parity price