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.
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.
Conversion premiumConversion premium
The 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 termsConversion terms
The 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 valueConversion value
The value of a convertible security if it is converted immediately. Also called parity value.
Conversion parity priceConversion parity price
Related: Market conversion price
Further SuggestionsConversion parity
Conversion parity or value
Stated conversion price
Limitation on conversion