The conversion ratio determines how much equity an investor can receive by exercising a convertible security. Here's how its used in investing and finance.

The transformation of convertible bonds into shares of stock is usually done at the bondholder's discretion. Sometimes, the trigger on a convertible bond is share price performance. In those cases, ...

Convertible bonds are typically issued by companies that have high expectations for growth and less-than-stellar credit ratings. The companies get access to money for expansion at a lower cost than ...

Convertible bonds are, customarily, fixed rate debt instruments issued by a company (the “issuer”), the terms of which allow the holders of the bonds to convert them into ordinary shares (common stock ...

Convertible bonds and convertible stocks are a tool that public companies often use for large financings to avoid disturbing their equity cap tables. Warren Buffett’s Berkshire Hathaway has been a big ...