Conversion Option

Conversion Feature

The ability to change from one investment vehicle to another. For example, one may be able to switch between mutual funds in a fund family without incurring a penalty. Likewise, one may exchange a convertible bond to common stock in the issuing company. Sometimes, one even may be able to change an adjustable-rate mortgage into a fixed-rate mortgage. All of these examples describe a conversion feature on the investment vehicles.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Conversion Option

The option to convert an ARM to an FRM at some point during its life.

See Adjustable Rate Mortgage (ARM)/Convertible ARMs.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The increase in earnings was partially offset by a non-cash expense of R1 560 million, or 217 cents per share (no tax impact), relating to the mark to market of the conversion option on the US$ convertible bonds at year end.
Cadogan said the financial results will raise the value of Cadogan's indirect participating interest if shareholders approve the exercise of the conversion option.
The decision to convert perpetual tier 1 convertible capital securities into ordinary shares on the first conversion option date on May 2 this year at the rate of 2.5 ordinary shares for every capital security (conversion price of 400 fils) is beneficial for shareholders as the current market price of BBK shares is between 480 and 490 fils, chairman Murad Ali Murad told the GDN on the sidelines of the annual and extraordinary general meetings yesterday at the InterContinental Regency Bahrain.
The conversion to an ESOP has further support from Congress with the passing this year of the Main Street Employee Ownership Act of 2018, the intent of which is to continue to make the ESOP conversion option a viable one.
M2 EQUITYBITES-October 2, 2017-Meritor provides update of conversion option of senior notes
handgun owners as a conversion option first and as a cartridge for new pistols second.
Buying a term life insurance policy with a conversion option is really important.
163(1) only if there was a substantial certainty that the conversion option would be exercised.
Fahad Al-Rajaan, AUB Chairman stated that, "IFC's decision to exercise the conversion option, following the IFC Capitalization Fund's accelerated conversion of its Mandatory Convertible Preference Shares (MCPS) in October 2013, is a testament to IFC's desire to further strengthen its long standing partnership and collaboration with AUB to expand financial services in the MENA region.
Other income for the fourth quarter of fiscal 2014 and fiscal 2013 included USD2.8m and USD6.2m, respectively, related to the increase in fair value of the conversion option of our CybAero convertible bond investment.
The app is pretty robust, and it offers one more conversion option - a choice for video/audio quality, which is useful considering various performance capabilities of devices.