Conversion Stock means shares of the Company 's authorized but unissued Common Stock; provided that if there is a change such that the securities issuable upon conversion of the Notes are issued by an entity other than the Company or there is a change in the class of securities so issuable, then the term "Conversion Stock" shall mean one share of the security issuable upon conversion of this Note if such security is issuable in shares, or shall mean the smallest unit in which such security is issuable if such security is not issuable in shares.
How does Stock Conversion work?
- SEC v. Bert Fingerhut et al.: http://www.sec.gov/litigation/litreleases/2007/lr20118.htm
- SEC v. Jay Slesinger et al and SEC v. ...
- SEC v Robert R. ...
- SEC v. ...
- SEC v. ...
- In the Matter of Henry Salzhauer, et al.: http://www.sec.gov/litigation/litreleases/lr17215.htm; http://www.sec.gov/litigation/admin/34-45005.htm
- SEC v. ...
What is a conversion parity price?
Conversion parity price is the effective price an investor paid for the opportunity to convert from a company's bond into shares of stock. This price is important to the investor because until the shares of stock reach that price, there is little value in attempting to convert the security into shares.
What is a convertible preferred share?
YEREVAN, Dec. 30. /ARKA/. Convertible Class B preferred shares of Unibank OJSC have been listed on the secondary (B) site of the Armenian Securities Exchange (AMX), the bank's press service reported. It said the preferred shares enable investors to receive ...
What is a convertible stock?
The notes will be convertible at the option of the holder to common stock or a combination of cash and stock. The company plans to use the proceeds of the offering for corporate purposes and to pay for the cost of capped call transactions related to the notes. Shares of Snap are off 6.9% Tuesday.
What does a stock conversion mean?
A conversion is the exchange of a convertible type of asset into another type of asset—usually at a predetermined price—on or before a predetermined date. The conversion feature is a financial derivative instrument that is valued separately from the underlying security.
How do you calculate stock conversion?
You can calculate the conversion ratio by dividing the bond's par value by the share price. If the conversion price for each common stock share is $10, the conversion ratio is calculated by dividing $1,000 by $10 to determine an investor will receive 100 shares of the issuer's common stock at conversion.
What happens when a stock converts?
Key Takeaways After preferred shareholders convert their shares, they give up their rights as a preferred shareholder (no fixed dividend or higher claim on assets) and become a common shareholder (ability to vote and participate in share price appreciation).
What means conversion of funds?
A conversion is the process of changing your fund holdings from 'inclusive' to 'unbundled' units. Some investors will prefer to convert to the new type of 'unbundled' funds, while others will prefer to continue to hold 'inclusive' funds.
What is a conversion price?
The market conversion price is the amount investors pay for a share when exercising their option to exchange convertible securities into common stock. It is calculated by dividing the convertible security's market price by its conversion ratio—the number of common shares a convertible security can be converted into.
What is conversion cost?
Conversion costs are the total of direct labor and factory overhead costs. They are combined because it is the labor and overhead together that convert the raw material into the finished product.
Why do companies convert shares into stock?
To pass a resolution in the meeting of shareholders: A limited liability company having share capital may, if so authorised by its articles, convert fully paid-up shares into stock and reconvert that stock into fully paid-up shares of any denomination by passing a resolution in its general meeting.
Should you buy stock before a merger?
Pre-Acquisition Volatility Stock prices of potential target companies tend to rise well before a merger or acquisition has officially been announced. Even a whispered rumor of a merger can trigger volatility that can be profitable for investors, who often buy stocks based on the expectation of a takeover.
What happens to your stock when another company buys it?
If the buyout is an all-cash deal, shares of your stock will disappear from your portfolio at some point following the deal's official closing date and be replaced by the cash value of the shares specified in the buyout. If it is an all-stock deal, the shares will be replaced by shares of the company doing the buying.
Is converting the same as trading?
Binance Convert vs. Convert is a simple and clean interface that provides instant crypto conversions unlike spot trading. Skip the fancy tools and get your preferred cryptocurrency fee-free in the correct amount, whether you're a casual retail user or a long-time crypto trader.
What is conversion in financial terms?
What Is a Conversion? A conversion is the exchange of a convertible type of asset into another type of asset—usually at a predetermined price—on or before a predetermined date. The conversion feature is a financial derivative instrument that is valued separately from the underlying security.
How does converting preferred stock into common stock affect the shareholders?
Either way, converting preferred stock into common stock dilutes the percentage ownership of existing common shareholders. Since convertible securities are converted into newly issued stock, the new stock increases the total outstanding shares in the market, which decreases existing shareholders’ ownership of a company.
What is conversion feature?
The conversion feature is a financial derivative instrument that is valued separately from the underlying security. An embedded conversion feature adds to the overall value of the security. Examples of assets that can undergo conversions are convertible bonds and preferred shares.
Which security has a conversion feature?
Another security that includes a conversion feature is preferred shares . Shareholders have conversion rights, which give them the ability to convert preferred shares to common shares if the results are advantageous to the investors.
How does a stock conversion work?
How Does Stock Conversion Work? There are several investment vehicles that the holder may exchange for common stock shares when certain conditions are met, usually involving a set price and date. This process is known as a conversion, and the investment vehicles that may be traded in may have the word "convertible" in their name, ...
What are the downsides of stock conversion?
The first is that, depending on the prices of the investment vehicle and the common shares, a conversion may not be advantageous to the investor.
Why do you need to keep track of the price of a convertible stock?
Because some convertibles, such as preferred shares, may see their price rise and fall, investors need to keep track of the common stock price to determine when the conversion is worthwhile. By dividing the price of the convertible by the ratio of common stock shares, an investor can determine when a sale will turn a profit.
When an investor purchases a convertible security, does it come with an agreement?
When an investor purchases a convertible security, it comes with an agreement that the investor may exchange it for a set number of common shares after a set date. When the date arrives, the investor must weigh the value of the security against the value of the common stock he would receive and decide whether to convert the security.
Examples of Conversion Stock in a sentence
The Corporation shall take all such actions as may be necessary to assure that all such shares of Conversion Stock may be so issued without violation of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which shares of Conversion Stock may be listed (except for official notice of issuance which shall be immediately delivered by the Corporation upon each such issuance)..
More Definitions of Conversion Stock
Conversion Stock means the shares of Common Stock issued or issuable upon conversion of the Shares.
What is conversion price?
What is the Conversion Price? The conversion price is the price per share at which a convertible security, such as corporate bonds or preferred shares, can be converted into common stock. The conversion price is set when the conversion ratio is decided for a convertible security.
Why is the conversion price important?
The Importance of the Conversion Price. The conversion price is part of determining the number of shares to be received upon conversion. If shares never close above the conversion price, the convertible bond is never converted to common shares.
Why is the conversion price higher than the current price?
Usually, the conversion price is set at a significant amount higher than the current price of the common stock to make conversion desirable only if a company's common shares experience a significant increase in value. The conversion price is set by management as part of the conversion ratio before the convertibles are issued to the public.
What is embedded conversion option?
Companies are willing to pay a little more, and investors are willing to accept a little less, for the embedded conversion option that allows holders of convertible securities to convert to common shares if the price of common shares reaches the conversion price.
