HomeDefinitionsCompareDebt Conversion ratioThe financial definition for Conversion ratio:Applies mainly to convertible securities. Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred stock when a conversion takes place. It is determined at the time of issue and is expressed either as a ratio or as a conversion price from which the ratio can be figured by dividing the par value of the convertible by the conversion price. Similar MatchesConversionConversionIn the context of securities, refers to the exchange of a convertible security such as a bond into stock. In the context of mutual funds, refers to the free exchange of mutual fund shares from one fund to another in a single family. Conversion factorsConversion factorsRules set by the Chicago Board of Trade for determining the invoice price of each acceptable deliverable Treasury issue against the Treasury Bond futures contract. Conversion featureConversion featureSpecification of the right to transform a particular investment to another form of investment, such as switching between mutual funds or converting preferred stock or bonds to common stock. Further SuggestionsConversion parityConversion parity or value Conversion parity price Conversion Period Conversion premium Conversion price Conversion value Click to compare definitions of Conversion ratio Click to view definitions beginning co |