The conversion ratio determines how much equity an investor can receive by exercising a convertible security. Here's how its used in investing and finance.

A ratio compares two or more quantities by using parts of a whole. In this bracelet, there are 2 parts red compared to 3 parts blue. The ratio of red beads to blue beads is 2 : 3. This is said aloud ...

Conversion price is the price per share at which convertible securities—typically bonds or preferred shares—can be exchanged for common stock. Conversion ratio is the number of shares that an investor ...