Examlex
Which statement is true?
Par Value
The stated value of a bond, stock share, or coupon as specified by the issuer.
Conversion Premium
The additional amount over the current value that an investor pays to convert a convertible security into a specified number of shares of common stock.
Conversion Ratio
The specific quantity of common shares an investor can receive for converting each unit of a convertible security, such as a convertible bond or preferred stock.
Par Value
The face value of a bond or stock, typically the amount that is paid back at maturity for bonds or a nominal dollar value assigned to shares of stock.
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