Forced Conversion

The occurrence of an issuer of a convertible security exercising the right to call the issue, forcing investors to convert their securities into the predetermined number of shares.

An issuer will be interested in forcing a conversion if interest rates decline significantly, or if the price of the security underlying the convertible is above the conversion price. Forced conversions are generally detrimental to the holders of the security.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Forced conversion — A forced conversion is the religious conversion or acceptance of a philosophy against the will of the subject, often with the threatened consequence of earthly penalties or harm. These consequences range from job loss and social isolation to… …   Wikipedia

  • forced conversion — Refers to a conversion of a convertible security that follows a call for redemption at a time when the value of the conversion security into which it may be converted is greater than the amount that will be received if the holder permits the… …   Black's law dictionary

  • forced conversion — Occurs when a convertible security is called in by the issuer, usually when the underlying stock is selling well above the conversion price. The issuer thus assures the bonds will be retired without requiring any cash payment. Upon conversion… …   Financial and business terms

  • Forced conversion — Use of a firm s call option on a callable convertible bond when the firm knows that the bondholders will exercise their option to convert. The New York Times Financial Glossary …   Financial and business terms

  • Forced assimilation — is a process of forced cultural assimilation of religious or ethnic minority groups, into an established and generally larger community. This presumes a loss of many characteristics which make the minority different. Ethnic assimilation If a… …   Wikipedia

  • Conversion — may refer to: Contents 1 Economy and Finance 2 Law 3 Marketing 4 Religion 5 Sport …   Wikipedia

  • conversion — noun 1 change to a new form/system/use ADJECTIVE ▪ barn (BrE), loft ▪ currency ▪ There are no charges for currency conversion. ▪ data, file …   Collocations dictionary

  • Conversion of Chełm Eparchy — The Conversion of Chełm Eparchy, which occurred from January to May 1875, refers to the generally forced conversion of the last Uniate Eparchy in the Russian Empire, which was centered in the Volhynian city of Chełm (Kholm), to the Orthodox faith …   Wikipedia

  • Conversion therapy — Conversion therapy, sometimes called reparative therapy or reorientation therapy, is one type of sexual orientation change effort that attempts to change the sexual orientation of a person from homosexual or bisexual to heterosexual.[1] These… …   Wikipedia

  • Conversion — • Refers to a moral change, a turning or returning to God and to the true religion Catholic Encyclopedia. Kevin Knight. 2006. Conversion     Conversion      …   Catholic encyclopedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.