Meaning FORCED CONVERSION: Occurs when a convertible security is called in by the issuer, usually when the underlying stock is selling well above the conversion price. The issuer thus assures the bonds will be retired without requiring any cash payment. Upon conversion into common, the carrying value of the bonds becomes part of a corporation's equity, thus strengthening the balance sheet and enhancing future debt capability
More terms such as Forced conversion in Dictionary F.
- Definition Federal Gift Tax:
- Examples A federal tax imposed on assets conveyed as gifts to individuals forced conversion definition.
- Definition Federal Agency Securities:
- Examples Securities issued by corporations and agencies created by the U.S. government, such as the Federal Home Loan Bank Board and Ginnie Mae forced conversion explain.
- Definition Forecasting:
- Examples Making projections about future performance on the basis of historical and current conditions data forced conversion what is.
- Definition Federal Deposit Insurance Corporation (FDIC):
- Examples A federal institution that insures bank deposits forced conversion meaning.
- Definition Fixed-Dollar Obligations:
- Examples Conventional bonds for which the coupon rate is set at a fixed percentage of the par value forced conversion abbreviation.
