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 ?
annual / monthly salary conversion option (employee-financed).
M2 EQUITYBITES-October 2, 2017-Meritor provides update of conversion option of senior notes
Buying a term life insurance policy with a conversion option is really important.
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.
These criteria raise an important question: does a BCN's embedded conversion option fit the definition of a derivative?
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.
TELECOMWORLDWIRE-November 19, 2013-ARRIS buyback and conversion option expires(C)1994-2013 M2 COMMUNICATIONS http://www.
AUB chairman Fahad Al-Rajaan commented that the fund's decision to exercise the conversion option before the mandatory conversion date indicated its confidence in AUB and its regional business strategy.