Conversion value

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.

See also

• Convertible bonds