MARKET CONVERSION PRICE

An effective cost an investor paid to buy common stock in the form of a convertible security and exercise the conversion option. To get market conversion price, divide the market price of the convertible security by its conversion ratio.

Convertible bond and convertible preferred stock are some examples of convertible securities. The former can be swapped for shares of a company’s stock, while the latter can be exchanged for the shares of common stock. These investments fall to "convertibles" category.

Also known as conversion parity price.