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If Tomas Purchases a Share of Stock for $150 and One

question 81

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If Tomas purchases a share of stock for $150 and one year later sells it for $225, he will realize a

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Definitions:

Conversion Premium

The extra amount a investor pays over the convertible security's current value to convert it into shares of stock.

Conversion Price

The conversion price is the predetermined price at which a convertible bond or preferred stock can be converted into common shares of the issuing company.

Conversion Ratio

The number of shares an investor receives upon converting a convertible security, like convertible bonds or preferred stock, into common stock.

Conversion Value

The worth of a convertible security if it were converted into the underlying stock at the current market price.

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