What is the “conversion premium”? The conversion premium is the difference between the value of the preferred shares and the value of the common shares if the preferred shares were converted. The conversion premium influences the price of convertible preferred shares traded on the market. The ma...
(redirected fromconvertible) Dictionary Thesaurus Financial Encyclopedia Wikipedia Related to convertible:convertible bond,Convertible currency,Convertible debt,Convertible Securities,convertible tablet AcronymDefinition CONVConversation CONVConversion CONVConvertible ...
3. a corporate security (usually bonds or preferred stock) that can be exchanged for another form of security (usually common stock) Synonym: convertible security adj 1. capable of being changed in substance as if by alchemy e.g. is lead really transmutable into gold?
First, a convertible preferred, because of its potential upside for investors, can be priced at a significantly lower dividend rate. Depending upon the nature of the capital markets at the time of issuance, the conversion price premium and other terms, the REIT might be able to save 100 basis...
Fundamentals of Financial Management-CHAPTER 20 Hybrid Financing Preferred Stock, Leasing,Warrants, and Convertibles 热度: A序列优先股购买协议(英文版)Series A Preferred Stock Purchase A 热度: 普通股优先股可转换债券股票期权 热度: Fin4321PerferredsandConvertibles ...
Conversion Ratio, Conversion Price, and Conversion Premium Advantages and Disadvantages of Convertible Preference Shares Final Words Usually, it is up to the investors to decide when to convert the preferred stock. In some cases, however, the issuer or the company can also enforce the option. Or...
Conversion price: The price at which a convertible preferred share can be converted into common shares. Conversion price can be calculated by dividing the convertible preferred stock’s par value by the stipulated conversion ratio. Conversion premium: The dollar amount by which themarket priceof the...
Convertible preferred shares can be sold on thesecondary market. Themarket priceand behavior are determined by theconversion premium, which is the difference between theparityvalue and the value of the preferred shares if the shares were converted. As shown in the example above, the value of the...
Reports on the amount raised by Cable & Wireless, a telecommunications company in Great Britain, in a convertible bond launched in June 2003. Conversion premium; Decline in shares in Cable & Wireless; Implications of the deal.EBSCO_bspEuroweek...
•Abondorshareofpreferredstockthatcanbeconverted,attheoptionoftheholder,intocommonstock –Whenaconvertibledebentureisinitiallyissued,aconversionratiotocommonstockisspecified –Ratioindicatesthenumberofcommonstocksharesofconverteddebentures –Togettheconversionprice,theparvalueofthebondisdividedbytheconversionratio Va...