Market Conversion Price

You have a convertible bond issued by Which Way Corp., the leading maker of traffic signs. The security acts like a bond, paying interest of 7%...but it has a clause making it convertible to common stock under certain circumstances.

The market conversion price provides the per-share value of that security. The Which Way convertible bond you hold is valued at $600. When converted, it provides you with 20 shares of the company. Divide the bond's value by the number of shares, and you get the market conversion price. In this case, $600 divided by 20...or $30 per share.