Conversion price: Difference between revisions
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imported>Doug Williamson (Align presentation of formula with qualification material) |
imported>Doug Williamson (Standardise appearance of page.) |
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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 | ||
Revision as of 13:15, 15 March 2015
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.
