Applies mainly to convertible securities. Common stock price at which a convertible bond can become exchangeable for common shares of equal value; value of a convertible bond based solely on the market value of the underlying equity. Par value plus conversion ratio. See bond value, investment value, parity.
Nearby TermsConversion parity Conversion parity price Conversion parity/value Conversion Period Conversion premium
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University