conversion value

Conversion value

The value of a convertible security if it is converted immediately. Also called parity value or converted value.

Market Conversion Price

The price one effectively pays for common stock when one exercises the conversion option of a convertible security. One calculates the market conversion price by dividing the price one paid for the convertible security by the conversion ratio, which is the number of shares of common stock one receives by exercising the conversion option. In order for the exercise of the option to be worthwhile, the market conversion price must be lower than the market price of common stock. It is also called the conversion parity price and the conversion value.

conversion value

The market value of the underlying asset(s) into which a convertible security may be exchanged. Generally, conversion value is calculated by multiplying the number of shares that can be obtained by the market price per share. Thus, a bond that can be converted into 30 shares of stock with a market price of $20 each has a conversion value of $600.
References in periodicals archive ?
The notes will be convertible, subject to the satisfaction of certain conditions, into cash up to the principal amount of such notes and, with respect to any excess conversion value, into cash or shares of Nuance common stock or a combination thereof, at Nuance's election.
South Korea's foreign reserves fell slightly last month as strong US dollar weakened a conversion value of non-dollar assets, central bank data showed on Monday.
3 ("Terms of allocation pursuant to the Conversion Right") of the Securities Note, the Company intends to allocate an amount in cash equal to the product of the par value of one ORNANE and the number of ORNANE for which the Conversion Right has been exercised and an amount payable in new and/or existing Cap Gemini's shares (at the option of the Company) corresponding to the product of the number of ORNANE for which the Conversion Right has been exercised and the difference between the Conversion Value (as defined in the Securities Note) and the par value of one ORNANE.
Upon certain conditions, the notes are convertible into cash up to their principal amount and, with respect to any excess conversion value, shares of the company's common stock.
dollar reduced the conversion value of non- dollar assets, central bank data showed Wednesday.
The BOK said that the investment profit gained ground and the strength in the euro and the yen raised their dollar conversion value, boosting the reserves.
SEOUL -- South Korea's foreign reserves stayed at a record level due to the continued rise in investment returns and an increase in conversion value of non-dollar denominated assets, central bank data showed yesterday.
50, the lowest price that the conversion value exceeds the par value).
Upon conversion, holders will receive up to the principal amount of the notes in cash and any excess conversion value in shares of Volcano's common stock.
Joachim Kundt, CEO, Siemens LLC, comments: "Today Siemens is the only company that offers solutions along the entire energy conversion value chain.
Joachim Kundt, CEO, Siemens, said: "Today Siemens is the only company that offers solutions along the entire energy conversion value chain.
Even as foreign exchange authorities offered dollar liquidity to the market, the foreign reserves rose last month due to higher investment profits and a rise in the dollar conversion value of non-dollar assets, including the euro, said HaKeun-cheol, an official at the BOK.