Web www.software-risk.co.uk

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. It is determined at the time of issue and is expressed either as a ratio or as a conversion price from which the ratio can be figured by dividing the par value of the convertible by the conversion price.

Copyright © 2005, Campbell R. Harvey. All Worldwide Rights Reserved. Do not reproduce without explicit permission.

Related Articles
Z
Target payout ratio
Second-preferred stock
Retention rate
Prior-preferred stock
Preferred stock
Preference share
Payout ratio

Similar Areas

Finance Items

Selected Books

Keywords

Conversion ratio

conversion

convertible securities

common stock

convertible bond

preferred stock

ratio