CONVERSION GRANT Meaning and
Definition
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A conversion grant is a term used in the financial sector to refer to a type of funding or investment strategy where a specific type of security is converted into another type of security. This conversion process typically occurs through the conversion of convertible securities, such as convertible bonds or convertible preferred stock, into common stock.
The purpose of a conversion grant is to provide investors or holders of the convertible securities with the opportunity to convert their existing securities into shares of common stock at a predetermined conversion price or ratio. This conversion allows the investor to participate in the profits, growth, and ownership of the company issuing the common stock.
Conversion grants are commonly used in financing transactions where a company wants to raise capital without immediately diluting the ownership of existing shareholders. By offering convertible securities, the company can attract investors by providing potential upside through the conversion feature. This feature enables the investor to convert their investment into common stock if certain predetermined conditions or events occur.
The terms and conditions of a conversion grant are typically outlined in a contract or agreement, specifying the conversion price, conversion ratio, conversion date, and other relevant terms. These terms ensure transparency and protect the rights of both the issuer and the investor.
In summary, a conversion grant refers to the process of converting a specific type of security into common stock, allowing investors to participate in the ownership and potential growth of a company.
Common Misspellings for CONVERSION GRANT
- xonversion grant
- vonversion grant
- fonversion grant
- donversion grant
- cinversion grant
- cknversion grant
- clnversion grant
- cpnversion grant
- c0nversion grant
- c9nversion grant
- cobversion grant
- comversion grant
- cojversion grant
- cohversion grant
- concersion grant
- conbersion grant
- congersion grant
- confersion grant
- convwrsion grant
- convsrsion grant
Etymology of CONVERSION GRANT
The word "conversion" derives from the Latin word "conversio", which means a turning around, changing, or transformation. It entered the English language in the late 14th century.
The word "grant" originated from the Old English word "grantan", meaning to grant or allow. It has roots in the Old Norse "grant" and the Old High German "granta".
When we combine these two words, "conversion grant" refers to a grant or allowance provided for the purpose of converting or transforming something. In contemporary usage, it often refers to funds or financial support granted to individuals or organizations to facilitate the conversion of a building or property for a specific use, such as creating affordable housing or improving energy efficiency.
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