Conversion price

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Revision as of 15:10, 20 September 2014 by imported>Doug Williamson (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.


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

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