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Conversion Ratio

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
Conversion ratio
Applies mainly to convertible securities. Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred stock when a conversion takes place. It is determined at the time of issue and is expressed either as a ratio or as a conversion price from which the ratio can be figured by dividing the par value of the convertible by the conversion price.
conversion ratio
The number of shares of stock into which a convertible security may be exchanged. The ratio for a convertible bond is calculated by dividing the principal amount of the bond by the conversion price.
Conversion Ratio
The number of common shares obtainable for each convertible securityshould the investor exercise the convertible option. A higher ratio means that more common shares are available per convertible security. It is calculated using the following formula: Conversion Ratio = Face Value of Convertible Security / Conversion Price.


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The existing convertible debentures held in Fuel-x would also convert into common shares of Source at a predetermined conversion ratio while the term loan would be eliminated through a combination of cash and common shares.
Source Petroleum Signs Binding Letter of Intent to Acquire Fuel-x ... by Business Wire
A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
JED Oil Inc. Completes the Sale of Non-Core Properties in East Ferrier by Business Wire
8691 shares of Common Stock for each Depositary Share, compared to the conversion ratio of 1.
Westmoreland Announces Additional Preferred Stock Exchanges by Business Wire
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