Tocantins Consultores Case Scenario
- Action 2: The issuer could split the stock or declare a large cash or stock dividend. This likely would reduce the price per share and, therefore, reduce the value of the convertible bond. Convertible bonds adjust the conversion price for stock splits or stock dividends and any cash dividends.
Incorrect. Although Pereira has correctly identified stock splits, stock dividends, and cash dividends as actions that could harm investors, he has not correctly described how cash dividends are treated. Convertible bonds typically set a threshold amount and a cash dividend below the threshold would have no impact on the conversion price.
请问stock split也会使得CB 调整conversion price吗？书上或讲义哪里提到了这一点？完全没有印象……
