Conversion parity

Conversion parity

The conversion parity shows investors how much a stock will cost them if they exercise their conversion right. Conversion parity = nominal value x price / number of shares per convertible bond +/- payment per share.

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Part of Speech: noun
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Industry/Domain: Banking
Category: Investment banking
Company: UBS
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Related terms

conversion parity

Banking; Investment banking

The conversion parity shows investors how much a stock will cost them if they exercise their conversion right. Conversion parity = nominal value x price / number of shares per ...

conversion parity

Financial services; Private equity

The equal dollar relationship between the price of a convertible security and that of the underlying security into which it can be converted. As an example, if a $1,000 debt ...

conversion parity

Financial services; General Finance

See: Market conversion price

conversion parity

Financial services; Funds

The price that an investor effectively pays for common stock by purchasing a convertible security, such as a bond or preferred stock, and then exercising the conversion option. ...

conversion parity price

Financial services; General Finance

Related: Market conversion price

conversion parity/value

Financial services; General Finance

Applies mainly to convertible securities. Common stock price at which a convertible bond can become exchangeable for common shares of equal value; value of a convertible bond ...

dirty floating

Banking; Investment banking

Currency policy which in principle recognizes the free movement of exchange rates but where interventions are nonetheless made with some frequency in an attempt to influence the ...

economic viability

Banking; Investment banking

Credit system mainly used in property financing and defined as the burden on the borrower's income (expressed as a percentage) that the cost of a property will incur.

summary bill enforcement procedure

Banking; Investment banking

Especially rapid summary bankruptcy proceedings brought against bill and cheque debtors whose names are entered in the commercial register.

share index

Banking; Investment banking

Indicator showing changes in the average prices of shares or groups of shares on the stock market. In Switzerland the most commonly used equity price indices are the Swiss ...

benchmark

Banking; Investment banking

Reference parameter (e.g. a share index or an index portfolio) used to compare the performance of a portfolio. A benchmark that is an index is also called a reference index.