Conversion ratio

Conversion Ratio - The conversion ratio are the total number of shares of common stock that can be collected, and obtained by converting individual shares of a convertible security.

conversion ratio investment & finance definition
The number of common shares that an investor can receive in exchange for a single convertible bond or convertible preferred share.
See conversion ratio in Wall Street Words ...

Conversion ratios are simple calculations that refer to the ratio of common shares of stock that are received from the conversion of a convertible security.

Conversion Ratio: The number of shares of stock for which the convertible can be exchanged.

Conversion ratio - Covered warrant
This ratio is the number of warrants that must be held and exercised in order 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 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
See Convertible Security.
Converted Put
See Synthetic Put.

Conversion ratio
The number of warrants that must be exercised to either buy (for call warrants) or sell (for put warrants) the underlying security. See also Parity.

Conversion Ratio - Issue price of the convertible divided by the conversion price.
Conversion Value or Parity - Number of common shares per convertible (conversion ratio) multiplied by the current price of the common stock.

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

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.

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

By contrast, in less conventional convertible security financings, the conversion ratio may be based on fluctuating market prices to determine the number of shares of common stock to be issued on conversion.

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).

On the upside, bonds offer a conversion ratio that dictates how many shares of stock you can receive if you trade in your bonds. Typically, you'll pay a premium for the exchange, but if the underlying stock is on fire, conversion is worthwhile.

[18] Average payment period[3] Asset turnover[19] Stock turnover ratio[20][21] Receivables Turnover Ratio[22] Inventory conversion ratio[4] Inventory conversion period (essentially same thing as above) Receivables ...

At the time of issuance of a convertible security, the price the issuer effectively grants the securityholder to purchase the common stock, equal to the par value of the convertible security divided by the conversion ratio.
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Generally, a convertible bond or convertible preferred stock is convertible into the underlying stock of the same corporation. The rate at which the shares of the bond or preferred stock are convertible into the common is called the conversion ratio.

Related: Market conversion price Conversion ratioThe number of shares of common stock that the security holder will receive from exercising the call option of a convertible security.

See also: Stock, Conversion, Share, Investment, Shares