| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,885,117,824 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Conversion Premium |
0.24 sec. |
|
Conversion premium The extent by which the conversion price of a convertible security exceeds the prevailing common stock price at the time the convertible security is issued. In general usage, the conversion premium is the amount by which the convertible security trades above its conversted value. For example, if a $1,000 par bond is trading at $1,100, it is convertible into 50 shares, and the shares are trading at $21, the converted value is 50 X 20.50 = $1,025, and the conversion premium is $75.
Conversion Premium The amount by which a convertible security is trading above the common stock into which it may be converted. Most convertible securities trade at a conversion premium, though it usually lessens as the common stock increases in price. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
| ? Mentioned in | ? References in periodicals archive | |
|---|---|---|
While this represents a conversion premium of approximately 30% over the closing price of TCS's Class A common stock on November 10, 2009 of $7. Rather than balancing a high dividend rate with a high conversion premium or a low dividends with a low conversion premium, the controlling stockholder received a high dividend rate and a low conversion premium. The bonds will mature in five years and three months, with a conversion premium of 25%-30% and a yield to maturity of 2. |
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|