Conversion premium and G-SIFI: Difference between pages

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imported>Doug Williamson
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imported>Martin ODonovan
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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.
(GSIFI).


Globally operating Systemically Important Financial Institution.


'''Example'''
Sometimes known as a Global SIFI.


The current market price of ordinary shares is £2.
The idea developed for [[Too Big To Fail]] banks.  


The conversion price is £2.50. 
Appetite whetted, regulators in the [[Financial Stability Board]] then looked around for non-bank institutions, for example insurance companies or large investors.
 
 
The conversion premium is given by:
 
= ( £2.50 - £2.00 = £0.50) / £2.00
 
= 25%.




== See also ==
== See also ==
* [[Conversion price]]
* [[Global SIFI]]
* [[Convertible bonds]]
* [[Too Big To Fail]]

Revision as of 10:28, 11 October 2013

(GSIFI).

Globally operating Systemically Important Financial Institution.

Sometimes known as a Global SIFI.

The idea developed for Too Big To Fail banks.

Appetite whetted, regulators in the Financial Stability Board then looked around for non-bank institutions, for example insurance companies or large investors.


See also