Conversion parity

Conversion parity

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. Also called Market Conversion Price.

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Part of Speech: noun
Synonym(s):
Blossary:
Industry/Domain: Financial services
Category: Funds
Company: Merrill Lynch
Product:
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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 ...

buy fund symbol

Financial services; Funds

The fund symbol that you are buying when entering a mutual fund exchange.

buy order(purchase)

Financial services; Funds

In securities trading, an order to a brokerage firm/broker to purchase a specified quality of a security at the market price or limited price.

buy put

Financial services; Funds

An option contract that gives the holder the right to sell the underlying security at a specified price for a certain, fixed period of time.

buy stop order(purchase)

Financial services; Funds

Buy order that is entered at a price above the current offering price and becomes a market order when the current market price touches or goes through the buy stop price.