Conversion ratio, Financial Management

It is the number that tells how many common stocks (or preference stocks) will the bondholder receive at the time of conversion. It is usually constant over the life of the security and protect against losses caused by stock splits or large stock dividends.

         Conversion ratio = Number of shares per bond if the bond is converted

Posted Date: 9/8/2012 6:02:24 AM | Location : United States







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