In the Money

Some may have been surprised recently to see Concordia’s share price on published stock exchange listings come down by nearly half last month to SKr12-12.50 per share from SKr20-21 per share. The reason for the reduction was a share split when the company issued a convertible debenture loan to replace on old debenture which expired April 30.

Under the old debenture, the share conversion price was SKr45, but the new convertible price is SKr11.50. When the loan was re-issued April 19, the listed share, trading at SKr20-21, was “deep in the money,” a term used to describe option contracts of a stock whose current market price is above the striking price of a call option or below the striking price of a put option.

This is only an excerpt of In the Money

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.