Business and Personal Finance Dictionary

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• CONVERSION FACTOR
  
  For the credit futures markets, it is the number that relates different coupons and acceptable deliverable maturities for delivery against the contract standard of an 8 percent coupon and the stipulated acceptable time remaining to maturity specifications. For the security markets, it is the contractual number that indicates how many shares a convertible security can be exercised into at any point in time.
  
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