Conversion premium: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson No edit summary |
imported>Doug Williamson (Standardise appearance of page.) |
||
| Line 2: | Line 2: | ||
''' | '''Example''' | ||
The current market price of ordinary shares is £2. | |||
The conversion price is £2.50. | |||
The conversion premium | The conversion premium is given by: | ||
= ( £2.50 - £2.00 = £0.50) / £2.00 | = ( £2.50 - £2.00 = £0.50) / £2.00 | ||
Revision as of 13:16, 15 March 2015
The premium over an ordinary share's current market price at which the holder of the convertible security may convert it into ordinary shares.
Example
The current market price of ordinary shares is £2.
The conversion price is £2.50.
The conversion premium is given by:
= ( £2.50 - £2.00 = £0.50) / £2.00
= 25%.
