Conversion Price

Knowledge Center



Summary, forum, best practices, expert tips and information sources.

 

What is a Conversion Price? Meaning.

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.


Special Interest Group

Conversion Pricing Special Interest Group.



Special Interest Group (1 members)

Forum  

Forum about Conversion Pricing.


Best Practices

The top-rated discussion topics about Conversion Pricing. Here you will find the most valuable ideas and practical suggestions.


Expert Tips

Advanced insights about Conversion Pricing. Here you will find professional advices by experts.


Information Sources

Various sources of information regarding Conversion Pricing. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.



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

Special Interest Group Leader

Are you an expert in Conversion Pricing? Sign up for free

Link to this knowledge center

Copy this code to your web site:

 
 

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 / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.6 - Last updated: 23-11-2020. All names of their owners.