Conversion premium: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson m (Spacing) |
||
| Line 1: | Line 1: | ||
The premium over an ordinary share's current market price at which the holder of the convertible security may convert it into ordinary shares. | The premium over an ordinary share's current market price at which the holder of the convertible security may convert it into ordinary shares. | ||
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%. | 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%. | ||
| Line 5: | Line 6: | ||
* [[Conversion price]] | * [[Conversion price]] | ||
* [[Convertible bonds]] | * [[Convertible bonds]] | ||
Revision as of 22:06, 4 August 2013
The premium over an ordinary share's current market price at which the holder of the convertible security may convert it into ordinary shares.
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%.
