Conversion Ratio
The number of common shares received at the time of conversion for each convertible security. It is calculated by using this formula:

Investopedia Says:
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 will have an impact on the relative price of the security.

Related Terms:
Contingent Convertibles - CoCos
Conversion
Conversion Price
Convertible Bond
Convertible Preferred Stock
Irredeemable Convertible Unsecured Loan Stock - ICULS
Mandatory Convertible
Par Value

• Take-Profit Order (T/P)
• Takeunder
• Taking The Street
• Tangible Asset
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• Tangible Cost
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• Tankan Survey
• Tape Is Late
• Tape Shredding
• Taping Rule
• Tap Issue
• Target-Benefit Plan
• Target-Date Fund
• Targeted Amortization Class (TAC)
• Targeted Amortization Class (TAC)
• Target Firm
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• Tax Anticipation Notes (TAN)
• Tax Anticipation Notes (TAN)