Conversion premium

Definition: [crh] The extent by which the conversion price of a convertible security exceeds the prevailing Definition: >common stock price at the time the convertible security is issued. In general usage, the conversion premium is the amount by which the convertible security trades aboveDefinition: its conversted value. For example, if a $1,000 par bond is trading at $1,100, it is convertible into 50 shares, and the shares are trading at $21, the converted value is 50 X 20.50 = $1,025, and thDefinition: e conversion premium is $75.

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