Conversion value: Difference between revisions
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The total current market value of the ordinary shares (or other securities) for which each convertible bond may be exchanged (at the bondholder's option). | The total current market value of the ordinary shares (or other securities) for which each convertible bond may be exchanged (at the bondholder's option). | ||
For example | |||
For example: | |||
each convertible bond may be exchanged for 40 ordinary shares, | |||
and the ordinary shares are currently trading in the market at £2 each, | |||
then the conversion value | |||
= 40 x £2 | |||
= £80. | |||
== See also == | == See also == | ||
* [[Convertible bonds]] | * [[Convertible bonds]] | ||
Revision as of 15:12, 20 September 2014
Convertible bonds.
The total current market value of the ordinary shares (or other securities) for which each convertible bond may be exchanged (at the bondholder's option).
For example:
each convertible bond may be exchanged for 40 ordinary shares,
and the ordinary shares are currently trading in the market at £2 each,
then the conversion value
= 40 x £2
= £80.
