Cashless Conversion

A lot of cults require you to donate all your worldly possessions. Those would be cashful conversions. For cashless conversions, you have to turn to Wall Street (kind of a twist there, huh?).

In the business world, the term usually applies to things like preferred stock or convertible bonds or stock options.

Say you own preferred stock in Midnight Conversions Inc. The preferred shares are convertible into common stock under certain conditions. Those conditions come into effect and you decide to exercise the option, turning the preferred stock into a prearranged number of common shares. You don't need to buy the shares. There's no input of cash on your part. Trade in the preferred stock, get the common shares. Cashless conversion.