Conversion Value

Filed Under » , ,
Dictionary Says

Definition of 'Conversion Value'

The financial worth of the securities obtained by exchanging a convertible security for its underlying assets. Convertibles are a category of financial instruments, such as convertible bonds and preferred shares, that can be exchanged for an underlying asset, such as common stock. Conversion value is calculated by multiplying the common stock price by the conversion ratio.

Investopedia Says

Investopedia explains 'Conversion Value'

A convertible security that is trading at a price above its conversion value is said to have a conversion premium. This makes the security valuable and desirable. A convertible security is considered "busted" when it is trading at a price far below its conversion value. If the price of the underlying security falls too far below the conversion value, the convertible security is said to have reached its floor.
Search results for

'Conversion Value'

  • Recharacterizing Your IRA Contribution Or Roth Conversion

    http://www.investopedia.com/articles/retirement/03/092403.asp
    ... An individual may choose to recharacterize a Roth conversion for a few reasons:
    the conversion is a failed or ineligible conversion , the value of the assets ...

  • Deep Value Disappointments

    http://stocks.investopedia.com/stock-analysis/2009/Deep-Value-Disappointments-ALL-BBV-AZ-AIG-BAESY0701.aspx
    ... That introduces an element of exchange rate risk, as the US dollar value of these
    ADRs is based on the conversion value of the underlying foreign shares, which ...

  • CFA Level 1 Study Guide - Liabilities - Reporting The Retirement ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/bond-retirement-conversion-reporting.asp
    ... Total Interest Cost Components; 9.10 Reporting The Retirement Or Conversion of Bonds; ...
    Of Debt Issuance; 9.15 Effect Of Changing Interest Rate On Debt Market Value ...

  • Did Your Roth IRA Conversion Pass or Fail?

    http://www.investopedia.com/articles/retirement/03/082703.asp
    ... Regardless of the depreciation in value, John will be required to pay taxes on the
    $152,575 - the original value of the conversion - unless the conversion is ...

  • Series 7 Study Guide - Equities - Shares from Conversion ...

    http://www.investopedia.com/exam-guide/series-7/equities/share-conversion.asp
    ... The conversion price may be parked at $20, but the market price changes ... will spend
    $10,000,000 to buy 10,000 convertible bonds with the $1,000 face value. ...

  • Converting An IRA Annuity To A Roth: Know The Rules

    http://www.investopedia.com/articles/retirement/10/rules-converting-ira-annuity-to-roth.asp
    ... 2008. These regulations outline three separate methods that can be used
    to value annuity contracts for conversion purposes. They ...

  • Introduction To Convertible Preferred Shares

    http://www.investopedia.com/articles/stocks/05/052705.asp
    ... As we show above, the value of the converted preferred share is equal to the market
    price of common shares multiplied by the conversion ratio. ...

  • Finding The Best Yields

    http://www.investopedia.com/articles/basics/10/finding-the-best-yields.asp
    ... Convertibles can be a good source of income and upward conversion value,
    and can add value as part of a diversified portfolio. (Learn ...

  • The Roth Conversion Mulligan

    http://www.investopedia.com/articles/retirement/09/roth-recharacterization.asp
    ... ie the $12,500). We can then reapply a conversion, taking advantage of
    the market while it's at a lower value. This will continue ...

  • Understanding The Cash Conversion Cycle

    http://www.investopedia.com/articles/06/cashconversioncycle.asp
    ... The cash conversion cycle (CCC) is one of several measures of management ... learn more,
    read Measuring Company Efficiency and Understanding The Time Value Of Money ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links