conversion ratio

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Conversion ratio

Applies mainly to convertible securities. Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred stock when a conversion takes place. It is determined at the time of issue and is expressed either as a ratio or as a conversion price from which the ratio can be figured by dividing the par value of the convertible by the conversion price.

Conversion Ratio

The number of common shares obtainable for each convertible security should the investor exercise the convertible option. A higher ratio means that more common shares are available per convertible security. It is calculated using the following formula: Conversion Ratio = Face Value of Convertible Security / Conversion Price.

conversion ratio

The number of shares of stock into which a convertible security may be exchanged. The ratio for a convertible bond is calculated by dividing the principal amount of the bond by the conversion price.
References in periodicals archive ?
The process of converting grain, legumes, and their byproducts into human-edible meat is commonly expressed as a grain:meat conversion ratio.
Figures 3 and 4 showed that the conversion ratios of C=C and SH were close to 90.
Our results are similar to another Canadian study of a hemodialysis unit (n=95) that showed conversion ratios greater than 200:1, when patients were converted from subcutaneous epoetin alfa to intravenous darbepoetin alfa (Shalansky & Jastrzebski, 2005).
By protecting advertisers on its ValidClick platform from click fraud, click-to-transaction conversion ratios are higher and therefore advertisers can justify paying a higher price per click, which in turn attracts website publishers to Litmus' profitable and rapidly growing ValidClick Network (http://www.
The Company has also reviewed the anti-dilution provisions of certain of its warrants to purchase common stock that were issued in conjunction with the Affected Preferred Stock (the "Affected Warrants") and has determined that it mistakenly issued additional warrant certificates, instead of adjusting the Affected Warrants' conversion ratios.
Accrue G2's family of products assists customers in analyzing and understanding conversion ratios, including content-to-purchase and browse-to-buy ratios, the overall streamlining of the sales process, abandonment rates and conversion metrics for product lines.
Synquiry(TM)solves the problems of disappointing revenues and poor conversion ratios in e-commerce and the frustrating in-site searches that turn up too much irrelevant data while all too often missing the essence of the search.
We see phenomenal potential in our high conversion ratios within our affiliate relationships.
Advertising, sponsorship and e-commerce are the heart of our efforts, yet we see phenomenal potential in our high conversion ratios with the basic affiliate relationships," stated Robert Fuchs VP of Marketing.
The revised agreement also provides that the minimum and maximum conversion ratios will be 1.
The American States proposal provides for a "collar," pursuant to which the maximum and minimum conversion ratios would be 1.