1. As an added feature, the conversion price resets at the end of each year to the lower of the exchange price or the ADR price. 2. Convertibles also resemble stock because they give investors the option to transform their securities into shares at a predetermined price, called the conversion price. 3. Details about the investment, including the interest rate to be paid on the debt and the conversion price for the shares, were not disclosed. 4. If the stock price falls, the conversion price of the bonds is adjusted downward. 5. If the stock never reaches that conversion price, the warrants expire worthless. 6. Instead of fixing the conversion price at the outset, that price will be set later, based on the market price of the common stock. 7. People who buy convertibles are betting the underlying stock will rise above the conversion price. 8. Since shares typically fall after a company announces a stock sale, companies can lower the conversion price to prevent bondholders from losing out. 9. The bonds can be converted to common shares at a specified price, known as the conversion price. 10. The conversion price will rise with the value of the bonds. |