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Reverse conversion |
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Reverse 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.Reverse conversion Similar MatchesConversion 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 parityConversion paritySee: Market conversion price Conversion arbitrageConversion arbitrageThe simultaneous purchase of a stock, the purchase of a put, and the sale of a call, creating a riskless transaction. Conversion PeriodConversion PeriodThe time period during which an investor can exchange a convertible security for common stock. 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. Further SuggestionsConversion ratioconversion Limitation on conversion Conversion ratio Conversion factors Conversion feature conversion terms Conversion premium currency conversion Conversion price Conversion Involuntary Conversion Conversion parity price Conversion value Stated conversion price |
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