Conversion Price

Knowledge Center

   

Description of Conversion Price. Explanation.

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print
 

Definition Conversion Price. Description.


The Conversion Price is the price per share at which a convertible bond or convertible stock is eligible to be converted into common stock. The conversion price is specified when the security is issued and is normally stated in the bond indenture (in the case of convertible bonds) or in the security prospectus of the convertible preferred stock.


The conversion price is useful to determine the number of shares to be received, by computing the quotient of the principal value (par value) of the convertible security divided by the number of shares into which it may be exchanged. Normally, the conversion price is set at a higher amount than the current price of the common stock. Therefore conversion is desirable only if a company's common shares increase in value significantly.


Conversion Pricing Forum

Conversion Pricing Special Interest Group


Special Interest Group

 

Best Practices - Conversion Pricing Premium

Expert Tips - Conversion Pricing Premium

Resources - Conversion Pricing Premium
 

News

Conversion Pricing
     
 

Videos

Conversion Pricing
     
 

Presentations

Conversion Pricing
     
 

More

Conversion Pricing
     

Compare with: Convertible Preferred Stock  |  Convertible Bond  |  Conversion Ratio

Special Interest Group Leader

You here


 

Return to Management Hub: Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Conversion Price summary and forum.

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.1 - Last updated: 6-12-2016. All names tm by their owners.