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.

Conversion Option

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

See Adjustable Rate Mortgage (ARM)/Convertible ARMs.

References in periodicals archive ?
Pursuant to the conversion option available to holders of the Debentures, an aggregate of 8,556,810 Common Shares were issued in relation to conversion requests received by Pembina between the date of its Redemption announcement and October 9, 2015.
The market is broken down as follows - Firm hand: finding a suitable light source,- Conversion option - Option 1: study of picosecond pulse train generator.
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.
Accordingly, its decision to exercise the conversion option represents a vote of confidence in AUB's strong underlying financial and operational fundamentals and in its positive future outlook, AUB chairman Fahad Al Rajaan said.
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.
SCSCO,s (kWh) = maximum storage capacity for each storage conversion option
As of the expiration of the conversion option, notes for USD231,197,000 were validly surrendered for conversion.
Although interesting, it is rare in practice to find a conversion option in the hands of the issuer.
This conversion option, known as an assurance benefit plan, is not an LTC insurance policy.
If it's worth spending money to study the conversion option, it's worth making sure the option is there when you need it, instead of allowing it to be regulated out of existence by the NCUA.
With the recent merger of Perform-to-Serve (PTS) and Fleet Rating Identification Engine (RIDE), Sailors are advised to take full advantage of the program's conversion option to stay Navy as the force is shaped to provide future capabilities.