Conversion premium and Cost push: Difference between pages

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The premium over an ordinary share's current market price at which the holder of the convertible security may convert it into ordinary shares.
''Economics - inflation.''
For example, say the current market price of the ordinary shares is £2, and the conversion price is £2.50.  The conversion premium = [£2.50 - £2.00 = £0.50]/£2.00 = 25%.
 
In relation to inflation, cost push is inflation caused by an increase in costs.
 
 
:<span style="color:#4B0082">'''''Inflation - we now have both demand pull and cost push'''''</span>
 
:"In terms of how current inflationary trends differ from the causes of previous periods of high inflation, John Whittaker, economist at Lancaster University Management School, observes that energy prices were also a major driver of price rises in the 1970s.
 
:'However, demand that was suppressed by people being unable to work during the pandemic has been released, which means we now have both demand pull and cost push,' he explains.
 
:'The latter is not just down to rising prices – it has been exacerbated by supply chain bottlenecks.' ”
 
:''The Treasurer, Issue 1 of 2022 - March 2022 - p10.''
 


== See also ==
== See also ==
* [[Conversion price]]
* [[Cost-push inflation]]
* [[Convertible bonds]]
* [[Demand-pull inflation]]
* [[Inflation]]
* [[Supply chain]]


[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

Latest revision as of 18:48, 5 March 2022

Economics - inflation.

In relation to inflation, cost push is inflation caused by an increase in costs.


Inflation - we now have both demand pull and cost push
"In terms of how current inflationary trends differ from the causes of previous periods of high inflation, John Whittaker, economist at Lancaster University Management School, observes that energy prices were also a major driver of price rises in the 1970s.
'However, demand that was suppressed by people being unable to work during the pandemic has been released, which means we now have both demand pull and cost push,' he explains.
'The latter is not just down to rising prices – it has been exacerbated by supply chain bottlenecks.' ”
The Treasurer, Issue 1 of 2022 - March 2022 - p10.


See also

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