Conversion premium and Mid market price: Difference between pages

Revision as of 13:48, 11 May 2016

The average value of the bid price and offer price of a traded asset.

Also known as Mid price or Mid rate.

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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.
+The average value of the bid price and offer price of a traded asset.
+Also known as Mid price or Mid rate.
-'''Example'''
-The current market price of ordinary shares is £2.
-The conversion price is £2.50.
-The conversion premium is given by:
-= (2.50 - 2.00) / 2.00
-= 0.50 / 2.00
-= 25%.
 == See also ==
-* [[Conversion price]]
+* [[Bid price]]
-* [[Convertible bonds]]
+* [[Offer price]]
+* [[Two way price]]
-[[Category:The_business_context]]
-[[Category:Financial_products_and_markets]]