conversion parity/value

Applies mainly to convertible securities ( convertible security). common stock price at which a convertible bond can become exchangeable for common shares of equal value; value of a convertible bond based solely on the market value of the underlying equity. par value plus conversion ratio. See bond value, investment value, parity. Bloomberg Financial Dictionary

Financial and business terms. 2012.

Look at other dictionaries:

  • Conversion Parity Price — The price paid for a share of stock purchased by exercising the option on a convertible security. The conversion parity price is the effective price paid by the investor, and is calculated by dividing the market price of the convertible security… …   Investment dictionary

  • parity value — See conversion value Related: conversion value …   Financial and business terms

  • Parity value — Related:conversion value …   Financial and business terms

  • parity value of a convertible bond — See conversion value. American Banker Glossary …   Financial and business terms

  • parity value — Fin see conversion value …   The ultimate business dictionary

  • Parity Price — When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles the price at which a convertible security equals the value of the underlying stock. 2. Options when an option is trading at its… …   Investment dictionary

  • conversion value — For convertibles, the value in stock. Also called the parity value. The conversion value can be determined by multiplying the conversion ratio by the value of the stock at any point in time. American Banker Glossary The value of a convertible… …   Financial and business terms

  • Conversion value — Also called parity value, the value of a convertible security if it is converted immediately. The New York Times Financial Glossary …   Financial and business terms

  • parity — For convertibles, level at which a convertible security s market price equals the aggregate value of the underlying common stock; value/worth of the convertible bond considered only as an equity instrument ( conversion ratio times common price).… …   Financial and business terms

  • conversion ratio — The specified number of shares of common stock that will be received for each convertible bond or share of convertible preferred stock at the time of conversion. This ratio is specified at issuance in the bond indenture agreement. This is often… …   Financial and business terms

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