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Planning includes:
Conversion Premium
The additional cost over the current market value of a convertible security that an investor pays to have the option to convert it into a set number of shares.
Conversion Price
The predetermined price per share at which a convertible bond or preferred stock can be converted into common stock.
Current Price
The market value of a stock, bond, or commodity at which it can be bought or sold at a particular time.
Conversion Ratio
The number of shares an investor gets for converting a convertible security into common stock.
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