Conversion price: Difference between revisions
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'''Example''' | |||
The nominal value of convertible bonds is £100. | |||
Each convertible bond may be converted into 40 ordinary shares. | |||
The conversion price | The conversion price is given by: | ||
= £100/40 | = £100 / 40 | ||
= £2.50. | = £2.50. | ||
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== See also == | == See also == | ||
* [[An introduction to equity capital]] | |||
* [[Conversion premium]] | * [[Conversion premium]] | ||
* [[Convertible bonds]] | * [[Convertible bonds]] | ||
[[Category:The_business_context]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 19:54, 15 November 2022
The specified price at which the principal or nominal value of convertible securities may be converted into the underlying shares.
Example
The nominal value of convertible bonds is £100.
Each convertible bond may be converted into 40 ordinary shares.
The conversion price is given by:
= £100 / 40
= £2.50.
