Conversion price

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.

See also

• An introduction to equity capital
• Conversion premium
• Convertible bonds