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conversion premium

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Heliogramme America
The Ultimate Conversion! THE image enhancement techniques
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Financial Dictionary

Conversion Premium

The amount by which the price of a convertible security exceeds the current market value of the common stock into which it may be converted.

Investopedia Commentary

Most convertible securities trade at a price above its conversion value.

Related Links

Convertible Bonds: An Introduction
Introduction To Convertible Preferred Shares

See also: Conversion, Conversion Price, Convertible Preferred Stock, Convertibles, Mandatory Convertible, Premium

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Heliogramme America
The Ultimate Conversion! THE image enhancement techniques
www.heliogramme.com
Premium Calculator
Up to 60% off products site wide. Free shipping for a limited time.
Overstock.com
Financial Dictionary

conversion premium

The excess at which a convertible security sells above its conversion value. The conversion premium usually declines as a convertible security rises in market price. A bond trading at $1,400 and convertible into 50 shares of common stock with a current market price of $22 each sells at a conversion premium of $1,400 - (50 × $22), or $300.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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