Conversion ratio

Conversion ratio
A conversion ratio, in the context of investment, means the number of units of the underlying that will obtained for each unit of a derivative (which includes embedded derivatives, as in convertible bonds.

Conversion Ratio
Calculations
Conversion ratio and conversion price work in tandem and should be considered together.
Conversion Price
Calculations ...

conversion ratio
relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred share when the conversion takes place.

Conversion Ratio
Article: Increasing Your Conversion Ratio
By André le Roux, Pandecta editor. Updated Jan. 2003.
Increasing Your Conversion Ratio ...

Conversion ratio
The number of shares of common stock that the security holder will receive from
exercising the call option of a convertible security.
Conversion value ...

Conversion ratio
The number of warrants that must be held and exercised to buy or sell a single unit of the asset e.g. one share. A higher conversion ratio will produce a lower warrant price.

CONVERSION RATIO " The number of shares of stock into which a convertible security may be converted. Conversion ratio equals the par value of the convertible security divided by the conversion price.

Conversion Ratio
Issue price of the convertible divided by the conversion price.
Conversion Value or Parity ...

Conversion Ratio
The number of common shares for which a convertible security can be exchanged. Convertible preferreds and debentures would have a stated number outlined in their prospectus or indenture as to the exchange rate.

Conversion Ratio The number of shares of common stock for which a convertible security can be exchanged for.
Convertible Bond Bond that can be converted to equity at a pre-specified conversion ratio.

Conversion ratio:
The number of Ordinary shares/Common stock which the security holder will receive if he decides to exercise the option of a convertible security (such as a Convertible bond).

conversion ratio
The specified number of shares of common stock that will be received for each convertible bond or share of convertible preferred stock at the time of conversion. This ratio is specified at issuance in the bond indenture agreement.

Conversion ratio: The ratio specifying how many shares of a common stock will be received upon converting one bond or share of preferred stock.

Conversion ratio
Applies mainly to convertible securities. Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred stock when a conversion takes place.

Conversion Ratio
Convertible Adjustable Preferred Stock - CAPS
Convertible Arbitrage
Convertible Bond
Convertible Debenture ...

Conversion ratio The number of of common stock that the holder will receive from exercising the of a .
Conversion value Also called parity value, the value of a if it is converted immediately.

Conversion Ratio - Is the number of common shares that a convertible bond or other security can be exchanged upon exercise.

Conversion Ratio
The conversion ratio is the number of common shares to be received in exchange for a convertible security.
Convertible bonds ...

That number is the security's conversion ratio. For example, if a convertible bond's conversion ratio is 12.5, and the bond has a par value of USD 1,000, then each USD 80 of par value can be converted into a single share.

(conversion ratio x common price.) See: conversion value. For international parity, US$ price of a foreign stock's last sale in an overseas market. (local currency stock price x forex rate x A.D.R. ratio).

Par value + conversion ratio. See bond value, investment value, parity. Conversion Period The time period during which an investor can exchange a convertible security for common stock.

This price is equal to the market price of the convertible security divided by the conversion ratio.

Dilution protection Standard provision that changes the conversion ratio in the case of a stock dividend or extraordinary distribution to avoid dilution of a convertible bondholder's potential equity position.

The price at which convertible securities, such as bonds and preferred stock, can be converted into common stock at a set conversion ratio.

Conversion Price: The price at which convertible securities, such as bonds and preferred stock, can be converted into common stock at a set conversion ratio.

It is the price an investor effectively pays to exchange or convert a convertible security into common stock and is equal to the price of the convertible security divided by the conversion ratio (the number of shares that the convertible can be ...

For convertibles, level at which a convertible security's market price equals the aggregate value of the underlying common stock; value/worth of the convertible bond considered only as an equity instrument (Conversion ratio times common price).

A provision that changes the conversion ratio in the case of a stock dividend or extraordinary distribution to avoid dilution of a convertible bondholder's potential equity position.
Dilutive effect ...

The conversion ratio changes with the issuance of Class A shares to avoid further dilution. However, the earnings per share appear to be made as if all shares were Class A and so this complex share structure is not of concern to us.

The conversion ratio specifies the number of shares that will be received per convertible bond. Preferred shares can also be convertible into common stock (convertible adjustable preferred stock or CAPS).

Both the bonds and the stocks owned under this name can be exchanged for a predetermined amount of common stock. A conversion ratio sets the amount of stock received for the bond; for example, a 30:1 ratio means that for every bond of $1,000 you own, ...

This method assumes that convertible securities are converted at the beginning of the fiscal period or at the time of issuance, whichever is later. The number of new shares is calculated on the basis of the convertible securities' conversion ratio.

price, the price that an investor effectively pays for common stock by purchasing a convertible security and then exercising the conversion option. This price is equal to the market price of the convertible security divided by the conversion ratio.

time of issuance of a convertible security, the price the issuer effectively grants the securityDefinition: holder to purchase the common stock, equal to the par value of the conDefinition: vertible security divided by the conversion ratio.

conversion price At the time of issuance of a convertible security, the price the issuer effectively grants the security holder to purchase the common stock, equal to the par value of the convertible security divided by the conversion ratio.

conversion ratio The number of shares of common stock that could be obtained by converting each share of a convertible security. conversion value The value of a convertible security if it is converted immediately.

See also: Convertible security, Banks, Conversion price, Risk premium, Stock split