Share conversion

[DTS]

What is a share conversion? I'm thinking it's a replacement of one company's stock for another. Is this correct?

Thanks,

Dennis

[JSLATER]

In my experience, conversions have been preferred shares to common shares, or one class of stock for another class of stock. Normally, again in my experience, an investor would buy a convertiable equity at a premium or higher dividend rate in anticipation of converting it in the future. I have never seen it as a replacement from one company to another. To me, that would indicate a merger and that would be an exchange. BUT, I am not an expert and your idea could be correct, but do some research.

[jimmcg]

As previously said it is generally a conversion from one security type or class to another. Go to google and type in "share conversion" and you will find more info than you ever wanted to know including conversion tables if you have a specific situation that gave rise to your question.

[DTS]

Conversion

Thanks to both of you.

I did do a Google search earlier and did not find what I was looking for fast enough! Finally, found the explanation second time in.

What threw me and got me to thinking this was an "exchange" was a client owned the stock, another company took over and then the conversion later took place.

Thanks again,

Dennis