# Conversion

- Canonical URL: https://www.gerhardmerk.de/conversion-2
- Post ID: 593860
- Modified: 2023-07-25T21:00:05+00:00
- Language: en

## Definition

In the case of bonds, the - previously contractually stipulated change - in the terms and conditions, especially with regard to interest and redemption. - In the case of options, a special strategy, namely - the sale of a spot position, whereby - a purchase position for the same commodity is entered into on the futures market with part of the proceeds and - the remaining amount is invested in fixed-interest securities. The investor thus obtains income from the securities in the form of interest payments, which he can use when the forward contract is allocated. - However, whether this procedure is profitable for the investor depends on a number of variable variables, above all on the effective interest rate of the securities temporarily taken over. - In a broader sense, according to German transformation law, transformation means: - merger, - change of legal form, - transfer of assets and - split, the latter in turn in the form of spin-off, split-up and spin-off. - In a narrower sense, it also means a mere change of legal form (e.g. the conversion of BASF Aktiengesellschaft into a European Company, a Societas Europaea [SE]), without the previous company being dissolved or newly founded. - See bond, floating rate, Euro-bonds, floater, floor, mergers and acquisitions, conversion bond, option, merger. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1