Conversion price: Difference between revisions
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imported>Doug Williamson m (Added more space so that calculations are clearer) |
imported>Doug Williamson (Align presentation of formula with qualification material) |
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For example: | '''For example:''' | ||
the nominal value of the convertible bonds is £100, | the nominal value of the convertible bonds is £100, | ||
| Line 10: | Line 10: | ||
The conversion price | The conversion price | ||
= £100/40 | = £100 / 40 | ||
= £2.50. | = £2.50. | ||
Revision as of 15:28, 14 March 2015
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.
