top of page
Conversion Ratio

Conversion Ratio

The conversion ratio is the number of common shares received at the time of conversion for each convertible security. The higher the ratio, the higher the number of common shares exchanged per convertible security. The conversion ratio is determined at the time the convertible security is issued and has an impact on the relative price of the security. The ratio is calculated by dividing the convertible security's par value by the conversion price of equity.

bottom of page