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The period of time during which a convertible security may be exchanged for common stock. The length of the conversion period depends upon the particular security; sometimes it lasts until maturity and sometimes it expires. If a conversion period has an expiration date, the issuing company may extend it at its discretion. See also: Conversion ratio.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The time during which a convertible security may be exchanged for other assets. Most conversion periods extend for the lives of the convertible securities (until maturity for bonds), although some periods are limited. A conversion period occasionally may be extended by the issuer.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.