Conversion price: Difference between revisions
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* [[Conversion premium]] | * [[Conversion premium]] | ||
* [[Convertible bonds]] | * [[Convertible bonds]] | ||
[[Category:The_business_context]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 20:37, 27 June 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.
