How is it determined whether securities that are convertible into or exercisable for common stock are issued at a discount to market value?
To determine whether securities that are convertible into or exercisable for common stock are issued at a discount to market value, the conversion or exercise price is compared to the market value of the common stock. If the conversion or exercise price is less than the market value immediately preceding the entering into of the binding agreement, then the issuance is at a discount.
To determine whether securities that are convertible into or exercisable for common stock are issued at a discount to market value, the conversion or exercise price is compared to the market value of the common stock. Market value is the consolidated closing bid price immediately preceding the entering into of the binding agreement. If the conversion or exercise price is less than the market value, then the issuance is at a discount.
Related Questions
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- How is it determined whether securities that are convertible into or exercisable for common stock are issued at a discount to market value?
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