Occurs when a convertible security is called in by the issuer, usually when the underlying stock is selling well above the conversion price. The issuer thus assures the bonds will be retired without requiring any cash payment. Upon conversion into common, the carrying value of the bonds becomes part of a corporation's equity, thus strengthening the balance sheet and enhancing future debt capability.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). forced conversion. Retrieved September 24, 2026, from http://smartdefine.org/forced_conversion/definitions/1154335 |
| Chicago | Barry Goldsmith. 2010. "forced conversion" http://smartdefine.org/forced_conversion/definitions/1154335 (accessed September 24, 2026). |
| Harvard | Barry Goldsmith 2010, forced conversion, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/forced_conversion/definitions/1154335>. |
| MLA | Barry Goldsmith. "forced conversion" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/forced_conversion/definitions/1154335> |