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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 priceConversion priceApplies 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. Currency conversionCurrency conversionA term used by the London Stock Exchange to denote that a trade was executed in one currency but converted for trade reporting. Conversion 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 premiumConversion premiumThe 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 termsThe 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. Further SuggestionsConversion valueConversion Period conversion Conversion parity or value Conversion parity Conversion ratio Conversion Conversion ratio Stated conversion price Conversion feature Equitable Conversion conversion arbitrage Limitation on conversion Conversion parity price Involuntary Conversion |
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