Conversion Ratio

Definition: Number of shares of common stock that may be obtained by converting a convertible bond or share of convertible preferred stock. Definition: [crh] Applies mainly to convertible securities. Relationship that determines how many shares of common Definition: stock will be received in exchange for each convertible bond or preferred stock when a conversion takes place. It is determiDefinition: ned 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 <Definition: A HREF="/?rd=par+value">par value of the convertible by the conversion price.

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