Convertible Price

Posted in Finance, Accounting and Economics Terms, Total Reads: 1289

Definition: Convertible Price

It is the price at which the holder of a convertible security can convert it into a specified number of equity shares. Convertible price is mentioned in per share terms and is specified in the contract at the time of security issue.

Convertible price per share is usually set much higher than the prevailing per share prices to ensure that the holder exercises the option only if the share prices go really high. This convertible security can be a preferred stock or a convertible bond.

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