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 ?
75-513 that an increase in the conversion ratio of convertible debentures was treated as a deemed distribution under Sec.
The conversion rate of SH groups was also fast for PEGDA-PTMP system, in which the maximum conversion ratio was achieved within 3.
In this retrospective analysis, the dose conversion ratio between epoetin alfa and darbepoetin alfa was greater than 200:1 in all patient populations studied (HD, PD, and CKD).
Macquarie Infrastructure Corporation (NYSE:MIC) disclosed on Thursday that the conversion ratio applicable to its 2.
Since issuing convertible debt is always accompanied by various conversion ratios, it is hypothesized that the larger the conversion ratio (the lower the conversion premium), the larger the equity component (and, therefore, the larger the dilution effect) and, as a result, the larger the negative relative stock price reaction.
Their third-down conversion ratio had to be unbelievable.
The existing convertible debentures held in Fuel-x would also convert into common shares of Source at a predetermined conversion ratio while the term loan would be eliminated through a combination of cash and common shares.
A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.