Cash concentration and Conversion price: Difference between pages

Revision as of 20:37, 27 June 2022

The specified price at which the principal or nominal value of convertible securities may be converted into the underlying shares.

Example

The nominal value of convertible bonds is £100.

Each convertible bond may be converted into 40 ordinary shares.

The conversion price is given by:

= £100 / 40

= £2.50.

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-The movement of cash from separate locations to a central bank account where it can be used and managed more effectively.
+The specified price at which the principal or nominal value of convertible securities may be converted into the underlying shares.
-Cash concentration can be undertaken for temporary balances as well as for longer-term balances.
+'''Example'''
-== See also ==
+The nominal value of convertible bonds is £100.
-* [[Foreign exchange swap]]
-* [[Notional pooling]]
+Each convertible bond may be converted into 40 ordinary shares.
-* [[Cash concentration or disbursement]]
-* [[Foreign exchange swap]]
+The conversion price is given by:
-* [[Master account]]
-* [[Pooling]]
+= £100 / 40
-* [[Sweep account]]
-* [[Target balancing]]
+= £2.50.
-* [[Target concentration]]
-* [[Threshold balancing]]
-* [[Zero balancing]]
-* [[CertICM]]
-* [[Legal implications of cash pooling structures]]
-* [[Concentrate]]
-* [[Concentration]]
-== Other resources ==
+== See also ==
-[[Media:2016_10_Oct_-_Powers_of_concentration.pdf| Powers of concentration - cash concentration with FX swaps, The Treasurer]]
+* [[Conversion premium]]
+* [[Convertible bonds]]
-[[Category:Cash_management]]
+[[Category:The_business_context]]
+[[Category:Financial_products_and_markets]]