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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Conversion  

Definition 1.

In the context of securities, refers to the exchange of a convertible security such as a bond into stock.In the context of mutual funds, refers to the free exchange of mutual fund shares from one fund to another in a single family.
 

Definition 2.

1. The translation of a convertible security into a predetermined number of shares. 2. A strategy used by future traders whereby they mix the purchase of option and futures contracts.
 

Definition 3.

The process of converting a convertible security, such as a bond or preferred stock, into common stock.
 
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