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Stated conversion price |
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Stated conversion priceAt the time of issuance of a convertible security, the price the issuer effectively grants the securityholder to purchase the common stock, equal to the par value of the convertible security divided by the conversion ratio.Stated conversion price Similar MatchesInvoluntary ConversionInvoluntary ConversionConversion of real property to personal property (money) without the voluntary act of the owner. This occurs when property is taken by eminent domain (condemnation). The owner is allowed to convert back to real property (buy another property) without paying tax on the gain from the condemnation. This must be done within a set time (3 years) and the prices of the old and new property are considered to form a new tax base. 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. 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. 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. 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 currency conversion Conversion ratio Conversion feature Conversion factors Conversion parity price Conversion price Conversion ratio Conversion conversion arbitrage Reverse conversion Conversion parity Conversion parity or value Conversion Period |
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