Conversion price
Conversion price is the effective price per share of stock if conversion occurs; the par value of the convertible security divided by the conversion ratio.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Conversion price. The effective price per share of stock if conversion occurs; the par value of the convertible security divided by the conversion ratio.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Conversion price, Pc. The effective price paid for common stock obtained by converting a convertible security.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
