Private equity

Private equity

Industry: Financial services

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Private equity

Conversion ratio

Financial services; Private equity

The ratio indicating the number of underlying securities that can be acquired upon exchange of a convertible security.

Conversion premium

Financial services; Private equity

The dollar or percentage amount by which the price of the convertible security exceeds the current market value of the common stock into which it could be converted.

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 instrument is convertible ...

Classified stock

Financial services; Private equity

(USA) The separation of a company's capital stock into multiple classes, such as Class A and Class B.

Capped-style option

Financial services; Private equity

An option with an established profit cap. A capped-style option is automatically exercised when the underlying security closes at or above the option's cap price for a call, or at or below the ...

Capitalisation ratios

Financial services; Private equity

The percentage of a company's total capitalisation that each capital component (debt, preferred stock, common stock, other equity) contributes.

Capitalisation rate

Financial services; Private equity

The discount rate used to determine the present value of a stream of future earnings. Equals normalised earnings after taxes divided by present value, expressed as a percentage.