forced conversion

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Forced conversion

Occurs when a convertible security is called in by the issuer, usually when the underlying stock is selling well above the conversion price. The issuer thus assures the bonds will be retired without requiring any cash payment. Upon conversion into common, the carrying value of the bonds becomes part of a corporation's equity, thus strengthening thebalance sheet and enhancing future debt capability.

Forced Conversion

In a callable convertible security, a situation in which the issuer calls the security, which requires the holder to exercise the conversion option and exchange the security for common stock. An issuer may authorize a forced conversion when interest rates decline and it can issue the same amount of debt at a lower cost of capital. However, a forced conversion may not be advantageous to the security holder because common stock is riskier and the combination of dividends and capital appreciation may not equal the coupon rate the holder was receiving prior to conversion.

forced conversion

The call for redemption of a convertible security at a price lower than the market value of the underlying asset into which the convertible may be exchanged. The investor finds it more favorable to exchange the convertible for the underlying asset than to give up the security for cash at the call price. For instance, suppose a $1,000 principal bond with a call price of $1,080 is converted into 20 shares of stock selling at $70 each. The bond is worth $1,400 in underlying stock. If the issuer calls the bond, the investor will be forced to convert before the call becomes effective.
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He has also in the past voiced grave concern about the dangers facing Christians around the world, including in Iraq and Syria, where the Islamic State extremist group has overrun large areas in a brutal offensive of beheadings and forced conversions.
The report details deaths, disappearances, arbitrary arrests, torture, coercion and forced conversions.
Earlier, amid uproar over VHP's 'ghar wapsi' programme, the government had said that it was open to bringing a bill against forced conversions.
Debate circling the forced conversions of Muslims and Christians to Hinduism has paralysed the Indian parliament and, by all accounts, it seems to have affected Prime Minister Narendra Modi's powers of speech.
Chennai, also said BJP's stand on forced conversions was clear and the government was ready to bring a law to ban them.
strict action should be taken," she said, warning that such forced conversions would create and breed communal tension in the country.
These include targeted killings, forced conversions, abductions, trafficking, slavery, sexual abuse, the destruction of places of religious and cultural significance and the besieging of entire communities because of their ethnic religious or sectarian affiliation.
17 ( ANI ): The Hindu community in Pakistan is reportedly angered by the rise in forced conversions to Islam.
These notices indicate that the local postmasters have authority to initiate delivery changes through the United States Postal Service (USPS) Postal Operations Manual; however, USPS says it is not currently planning forced conversions to centralized delivery for properties with established service.
The Chief Minister directed the IG Sindh to ensure timely cooperation to the Hindu community on any complaints of kidnapping, robberies and forced conversions.
However, the recent persecutions and forced conversions of non-muslim citizens have highlighted the fact that we have not lived up to Quaid's vision of Pakistan.
Nevertheless, maintaining the traditions of their faith is paramount for Gaza's dwindling Christian population, and the threat of forced conversions, whether real or perceived, has been the single issue which has brought the community out into the open, where political and economic strife seems insurmountable and beyond their control.