Conversion price: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Standardise appearance of page.) |
imported>Doug Williamson (Standardise appearance of page) |
||
| Line 10: | Line 10: | ||
The conversion price is given by: | The conversion price is given by: | ||
= | = 100 / 40 | ||
= £2.50. | = £2.50. | ||
Revision as of 12:04, 21 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.
