conversion

con·ver·sion   (kən-vûr'zhən, -shən)    n.   The act of converting. The state of being converted. The unlawful appropriation of another's property. The changing of real property to personal property or vice versa. A change in which one adopts a new religion, faith, or belief. Something that is changed from one use, function, or purpose to another. Law The unlawful appropriation of another's property. The changing of real property to personal property or vice versa. The exchange of one type of security or currency for another. Logic The interchange of the subject and predicate of a proposition. Football An extra point or points scored after a touchdown, as by kicking the ball through the uprights or by advancing the ball into the endzone from the three-yard line. Psychiatry A psychological defense mechanism by which repressed ideas, conflicts, or impulses are manifested by various bodily symptoms, such as paralysis or sensory deficits, that have no physical cause. The expression of a quantity in alternative units, as of length or weight. [Middle English conversioun, religious conversion, from Old French conversion, from Latin conversiō, conversiōn-, a turning around, from conversus, past participle of convertere, to turn around; see convert.] con·ver'sion·al, con·ver'sion·ar'y (-zhə-něr'ē, -shə-) adj.

Conversion

1. The exchange of a convertible type of asset into another type of asset, usually at a predetermined price, on or before a predetermined date. The conversion feature is a derivative and is valued separately from the underlying security and added to the overall value of the security.

2. A strategy used by futures traders that involves combining both options and futures contracts.

Investopedia Commentary

1. Conversion can only be performed if there is a conversion feature indicated in the bond indenture or security prospectus. Conversion must be performed by a certain date and at a specified price. Either the issuer or the investor may have the conversion option.

2. A conversion involves the purchase of a futures contract, in combination with the selling of a call and the purchase of a put with the same strike and expiration.

Related Links

Convertible Bonds: An Introduction
Introduction To Convertible Preferred Shares

See also: Bond, Convertible Bond, Convertible Debenture, Convertibles, Derivative, Forced Conversion, Futures Contract, Indenture, Option, Prospectus

Also spelled: convert, converted, converting

Main Entry: con·ver·sion
Pronunciation: k&n-'v&r-zh&n
Function: noun
1 a : the act of changing from one form or use to another b : the act of exchanging one kind of property for another; especially : the act of exchanging preferred stocks or bonds for shares of common stock of the same company usually at a preset ratio or price and at a preset time

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equitable conversion
: the constructive conversion of real property into personal property esp. as a result of a contract for sale of land or testamentary instructions to sell real estate and divide the proceeds
NOTE: Equitable conversion is a legal fiction under which the seller of a real property becomes, upon the execution of a contract for the sale of the property, the owner of personal property in the form of legal title to the property that secures payment of the purchase price. The purchaser is deemed to be the holder of equitable title in and owner of the real property, having the rights and being subject to the liabilities that attend that status. In the case of a will in which a property owner authorizes the sale of real property and distribution of the proceeds, the property transforms into personalty by equitable conversion upon the owner's death.

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involuntary conversion
: the conversion of property into other property as compensation for the theft, destruction, seizure, requisition, or condemnation of the original property
NOTE: For income tax purposes, involuntary conversions are generally taxable, and the gain or loss is computed by offsetting the basis of the property against the compensation received (as from insurance).
2 : the crime or tort of interfering with the ownership of another's movable or personal property without authorization or justification (as a lien) and esp. of depriving the owner of use and possession —see also FRAUDULENT CONVERSION

Main Entry: con·ver·sion
Pronunciation: k&n-'v&r-zh&n, -sh&n
Function: noun
1 : the transformation of an unconsciousmental conflict into a symbolically equivalent bodily symptom
2 : GENE CONVERSION

conversion con·ver·sion (kən-vûr'zhən, -shən)
n.

1. The acquisition by bacteria of a new property associated with presence of a prophage.

2. A defense mechanism in which repressed ideas, conflicts, or impulses are manifested by various bodily symptoms, such as paralysis or breathing difficulties, that have no physical cause.

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con·ver'sive (-sĭv) adj.

Conversion

the turning of a sinner to God (Acts 15:3). In a general sense the heathen are said to be "converted" when they abandon heathenism and embrace the Christian faith; and in a more special sense men are converted when, by the influence of divine grace in their souls, their whole life is changed, old things pass away, and all things become new (Acts 26:18). Thus we speak of the conversion of the Philippian jailer (16:19-34), of Paul (9:1-22), of the Ethiopian treasurer (8:26-40), of Cornelius (10), of Lydia (16:13-15), and others. (See REGENERATION.)