Conversion Price

The amount of money that you’d pay to turn into something else. Maybe you really want to be a giant. Or perhaps you want to sell the devil your soul to give you magic home run hitting powers. There has been no shortage of Faustian stories about converting a soul into payment for what the person wishes to become.

In finance, a conversion price is the amount of money for which a convertible bond or other convertible security can be exchanged for common stock in a company. Typically, conversion prices are higher than the current value of the common stock when issued. This makes converting from debt to equity attractive only if the amount of common shares has pushed higher.