Conversion price: Difference between revisions
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The conversion price is given by: | The conversion price is given by: | ||
= | = £100 / 40 | ||
= £2.50. | = £2.50. | ||
Revision as of 20:37, 15 January 2016
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.
