Conversion ratio
Conversion ratio (also known by its acronym, CR) is the number of shares of common stock received upon conversion of one convertible security.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Conversion ratio. The number of shares of common stock received upon conversion of one convertible security.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Conversion ratio, CR. The number of shares of common stock that are obtained by converting a convertible bond or share of convertible preferred stock.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
