conversion equivalent

conversion equivalent

The price at which common stock would have to sell in order to make a convertible security worth its market price in common stock value alone. The equivalent is calculated by dividing the conversion ratio into a convertible security's market price. A $1,000 face amount bond trading at $1,200 and convertible into 40 shares of stock has a conversion equivalent of $1,200/40 shares, or $30 per share.
References in periodicals archive ?
The savings is comparable to what three power plants could produce annually, or the conversion equivalent of 4,000,000 barrels of oil, according to ConSol.
Dynamic currency conversion instantly lets European customers see exactly what their overseas purchase will cost by locking-in the currency conversion equivalent at point of purchase.