Conversion Option

Conversion Feature

The ability to change from one investment vehicle to another. For example, one may be able to switch between mutual funds in a fund family without incurring a penalty. Likewise, one may exchange a convertible bond to common stock in the issuing company. Sometimes, one even may be able to change an adjustable-rate mortgage into a fixed-rate mortgage. All of these examples describe a conversion feature on the investment vehicles.

Conversion Option

The option to convert an ARM to an FRM at some point during its life.

See Adjustable Rate Mortgage (ARM)/Convertible ARMs.

单词	conversion option
释义	Conversion Option Conversion Feature The ability to change from one investment vehicle to another. For example, one may be able to switch between mutual funds in a fund family without incurring a penalty. Likewise, one may exchange a convertible bond to common stock in the issuing company. Sometimes, one even may be able to change an adjustable-rate mortgage into a fixed-rate mortgage. All of these examples describe a conversion feature on the investment vehicles. Conversion Option The option to convert an ARM to an FRM at some point during its life. See Adjustable Rate Mortgage (ARM)/Convertible ARMs.
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