Conversion premium

Conversion Premium - a conversion premium is the percentage or exact dollar amount by which the price of the convertible security exceeds the current market value of the common stock into which it be converted into..

conversion premium investment & finance definition
The excess at which a convertible security sells above its conversion value. The conversion premium usually declines as a convertible security rises in market price.

A conversion premium is understood to be the percentage or dollar amount that the current price of a convertible security is more than the amount that would be realized by converting the security into common stock.

Conversion Premium - Refers to the percentage above parity at which the convertible security is trading. Conversion Premium is calculated as follows:
(Convertible Price - Conversion Value)
Conversion Value ...

Conversion premium
The extent by which the conversion price of a convertible security exceeds the prevailing common stock price at the time the convertible security is issued.

Conversion premium
The amount by which the price of a convertible bond exceeds the market price of the underlying stock.
Convertible Currency ...

This is the conversion premium. If you want to own the stock, you are better off buying it at the lower current price rather than waiting for it to hit this premium.

Interest Rate Risk (in accounting)
Reorganization Bond (finance term)
Positive Carry (business term)
Conversion Premium (finance term) ...

A bond with an option, allowing the bondholder to exchange the bond for a specified number of shares of common stock in the firm. A conversion price is the specified value of the shares for which the bond may be exchanged. The conversion premium is ...

Preferred stock often comes with a conversion clause permitting it to be traded in for common shares; in such instances, look at the conversion premium, or gap between the conversion price and the market price of the common.

conversion premium The dollar or percentage amount by which the price of the convertible security... conversion price The price at which a given convertible security can be converted to common stock....

See also: Conversion, Premium, Convertible, Share, Investment