conversion value

Conversion value

The value of a convertible security if it is converted immediately. Also called parity value or converted value.
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Market Conversion Price

The price one effectively pays for common stock when one exercises the conversion option of a convertible security. One calculates the market conversion price by dividing the price one paid for the convertible security by the conversion ratio, which is the number of shares of common stock one receives by exercising the conversion option. In order for the exercise of the option to be worthwhile, the market conversion price must be lower than the market price of common stock. It is also called the conversion parity price and the conversion value.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

conversion value

The market value of the underlying asset(s) into which a convertible security may be exchanged. Generally, conversion value is calculated by multiplying the number of shares that can be obtained by the market price per share. Thus, a bond that can be converted into 30 shares of stock with a market price of $20 each has a conversion value of $600.
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.
References in periodicals archive ?
The reduced viscosities divided by the initial value from steady shear measurements for all temperatures for IMC as function of conversion do not collapse into a single curve as the epoxy system shown in the Supporting Information, but the viscosity rises to infinity at a very low conversion value.
- Announcement about the Adjustment of the Conversion Value for Euro-Yen Denominated Convertible Bonds Maturing in 2019
"This proposed collaboration with Ravago is an excellent example of a partner bringing world-class technologies and expertise to complement Adnoc's strengths, unlocking conversion value and creating efficiencies, for the benefit of both partners," he noted.
As the dietary methionine + cysteine: lysine ratio increased, the feed conversion value decreased (P<0.01), according to the regression equation: FC=2.336-1.336X; R2=0.74.
Due to the cutting edge approach, conversion rate and conversion value algorithms are able to increase overall performance from retargeting activities up to 29 percent.
The notes will be convertible, subject to the satisfaction of certain conditions, into cash up to the principal amount of such notes and, with respect to any excess conversion value, into cash or shares of Nuance common stock or a combination thereof, at Nuance's election.
South Korea's foreign reserves fell slightly last month as strong US dollar weakened a conversion value of non-dollar assets, central bank data showed on Monday.
The predicted conversion value of 99.43 was approximately equal to the average observed value of 99.13.
Conversion value is another parameter that may significantly determine the profitability of the issue of convertible bonds.
"A rise in gains from overseas asset management offset falls in the dollar conversion value of euro-denominated assets," the central bank said.
Because the distribution of the Y stock diluted the conversion value of the preferred stock (by decreasing the value of the X2 common stock), X2 increased the conversion ratio of the preferred stock to fully protect the preferred shareholders from dilution.