Conversion price: Difference between revisions
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imported>Doug Williamson m (Added more space so that calculations are clearer) |
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The specified price at which the principal or nominal value of convertible securities may be converted into the underlying shares. | The specified price at which the principal or nominal value of convertible securities may be converted into the underlying shares. | ||
For example | |||
For example: | |||
the nominal value of the convertible bonds is £100, | |||
each convertible bond may be converted into 40 ordinary shares. | |||
The conversion price | |||
= £100/40 | |||
= £2.50. | |||
== See also == | == See also == | ||
* [[Conversion premium]] | * [[Conversion premium]] | ||
* [[Convertible bonds]] | * [[Convertible bonds]] | ||
Revision as of 15:10, 20 September 2014
The specified price at which the principal or nominal value of convertible securities may be converted into the underlying shares.
For example:
the nominal value of the convertible bonds is £100,
each convertible bond may be converted into 40 ordinary shares.
The conversion price
= £100/40
= £2.50.
