Conversion feature

Conversion feature

Specification of the right to transform a particular investment to another form of investment, such as switching between mutual funds or converting preferred stock or bonds to common stock.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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
References in periodicals archive ?
The second quarter 2018 net loss was largely driven by an accounting impact of a non-cash beneficial conversion feature on the outstanding preferred shares totalling USD48.5m or USD0.29 per share.
4) Simplify the conversion of cryptocurrencies for users via a one-click instant conversion feature
This refrigerator also offers the ultimate flexible storage through the Smart Conversion feature. Choose from five freezer-fridge settings, depending on your energy and storage requirements.
Nevertheless, the preferred stock is not afforded equity credit by Fitch given that it has a fixed conversion rate and lacks a mandatory conversion feature.
This conversion feature illustrates the importance of considering the anticipated holding period in choosing a share class.<br />Class C Shares.
Ratings also reflect relative risk of the ADT-1 instrument including profit servicing from only earnings for the year, conversion feature in the event of pre-specified trigger events, lock-in clause and point of non-viability in terms of regulatory requirements.
The decrease was due to the one-time charge related to the beneficial conversion feature of the Company's Series B Convertible Preferred Stock in 2016.
The assigned rating portrays the relative risk of the Tier-1 instrument wherein the issuer has full discretion on coupon payments, interest servicing from only profits for the year and conversion feature in the event of pre-specified trigger events, lock-in clause and point of non-viability in terms of regulatory requirements.
Dana Gas' solution is to propose to exchange the Sukuk with a new enforceable, Shari'ah compliant instrument, which would have a tenor of four years, confer rights to profit distributions at less than half of the current profit rates and without a conversion feature. Such new profit payments will comprise a cash and PIK element.
The UAE-based energy producer said on Tuesday in a filing that it proposes exchanging $350 million of nine per cent certificates and $350 million of seven per cent exchangeable certificates with a new four-year security paying profit "at less than half of the current profit rates and without a conversion feature."
The conversion feature of renewable and convertible term allows policyholders to enjoy higher death protection than they could otherwise afford and later allows them to lock-in their premiums and build cash values when their ability to pay premiums increases.
The conversion feature would allow that person to keep all or a portion of their life insurance after the 20-year term for the rest of their life.