Conversion price: Difference between revisions

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For example:
'''Example'''


the nominal value of the convertible bonds is £100,
The nominal value of convertible bonds is £100.


each convertible bond may be converted into 40 ordinary shares.   
Each convertible bond may be converted into 40 ordinary shares.   


The conversion price  
The conversion price is given by:


= £100/40  
= £100 / 40  


= £2.50.
= £2.50.
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== See also ==
== See also ==
* [[An introduction to equity capital]]
* [[Conversion premium]]
* [[Conversion premium]]
* [[Convertible bonds]]
* [[Convertible bonds]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

Latest revision as of 19:54, 15 November 2022

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