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 ?
Again, if we were the only visitors that day, you would have four traffic counts and one sales transaction, which would result in a conversion rate of only 25%.
The relative increase in the conversion rate in Collaborative hospitals between the preperiod and the final months of the first phase was large--8 percentage points--and statistically significant.
Two Harbors Investment Corp (NYSE:TWO) adjusted the conversion rate for its 6.
The latest dividend resulted in the increase in conversion rate.
A real estate investment trust, Annaly Capital Management Inc (NYSE:NLY) stated today an adjustment to the conversion rate for its 4.
Also, the company said that notice of the conversion rate adjustment was delivered to security holders and the trustee Wells Fargo Bank National Association, under the terms of the governing indenture for the notes.
Hospice company Chemed (NYSE:CHE) said on Tuesday that it has adjusted the conversion rate of its 1.
M2 EQUITYBITES-January 7, 2014-Annaly Capital declares new conversion rate of USD12.