Conversion Price

Knowledge Center

Summary, forum, best practices, expert tips and resources.


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.

Conversion Pricing Special Interest Group

Special Interest Group (1 members)

Forum about Conversion Pricing  

Discussions about Conversion Pricing.

Best Practices about Conversion Pricing

Here you find the most valuable discussions from the past.

Expert Tips about Conversion Pricing

Here you will find advices by experts.

Information Sources about Conversion Pricing

Here you will find powerpoints, videos, news, etc.

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

Special Interest Group Leader

You here? Sign up for free


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. V15.5 - Last updated: 5-7-2020. All names of their owners.