Definition of conversion

1. act of exchanging one class of corporate security for another. An example is the conversion of convertible bonds into stock.
2. valuationsubstitution for another. An example is the restatement of historical cost for that of current cost.See also conversion cost
3. transfer of mutual fund shares from one fund to another in the same family.
4. switch from one currency to another using an exchange ratio.

1. exchange of banking charter by a bank or thrift institution, for example, a state chartered bank applying for a national charter from the Comptroller of the Currency, or vice versa. Charter conversions allow a bank to take advantage of differences in banking regulation, such as more liberal legal lending limit for state chartered banks in some states.
2. switching from mutual ownership to stock ownership through a common stock RIGHTS offering, done by a savings bank or savings and loan association to raise equity capital.
3. switching an adjustable-rate mortgage (ARM) to a fixed rate loan, often at no additional charge to the borrower if done within a specified period.
4. exchange of a convertible security, such as a capital note or a debenture for a specified number of common stock shares.
5. exchange of mutual fund shares for shares in another source of funds, often at no charge if the transfer is within a family of funds.
6. in tort law, the wrongful taking of property that belongs to someone else, as when a trustee uses assets in a trust fund for personal benefit.

1. exchange of a convertible security such as a bond into a fixed number of shares of the issuing corporation's common stock.
2. transfer of mutual-fund shares without charge from one fund to another fund in a single family; also known as fund switching.
3. in insurance, switch from short-term to permanent life insurance.
4. transfer of rental apartments into cooperatives or condominiums.
5. taking property that belongs to another. See also involuntary conversion.

1. exchange of a convertible security such as a bond into a fixed number of shares of the issuing corporation's common stock.
2. transfer of mutual-fund shares without charge from one fund to another fund in a single family; also known as fund switching.
3. in insurance, switch from short-term to permanent life insurance.

1. tort against another person's property, designed to detain or dispose of it in a wrongful manner. For example, wrongful selling of another person's automobile without permission would qualify as an act of conversion.
2. in group life and health insurance, a provision that allows a certificate holder to convert group coverage to an individual policy under specified conditions.

Computer file maintenance: process of converting data from one format or system to another, such as from hard copy to magnetic tape; also called reformatting.
Direct marketing: transformation of a trial offer buyer or catalog requestor into a customer through a first-time purchase.
Magazines: first-time renewal of a subscription. See also conversion renewal percentage.

1. changing property to a different use or form of ownership, such as when apartments are transformed to condominiums.
   Example: A condominium conversion allows existing tenants to remain until the expiration of their lease and often allows them to purchase the unit at terms more favorable than those offered to general public.

2. the taking away of property that belongs to another person. See also involuntary conversion.
   Example: An illegal conversion of the landlord's property occurred when the tenant removed the landlord's light fixture from the apartment.

3. a change in the ownership form of a Savings and Loan association.
   Example: Friendly Savings applies to the federal home loan bank system Board for conversion from a mutual savings bank to a stockholder-owned company.