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Equitable Conversion |
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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.Equitable Conversion Similar MatchesConversion valueConversion valueThe value of a convertible security if it is converted immediately. Also called parity value. 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. Reverse conversionReverse conversionA 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. Limitation 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. Further Suggestionscurrency conversionConversion parity price Involuntary Conversion conversion Conversion parity or value conversion arbitrage Conversion conversion terms Stated conversion price Conversion price Conversion premium Conversion factors Conversion Period Conversion ratio Conversion feature |
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