Convertible Securities & Parity Price (SIE + Series 7, 65, 66)

Basic Wisdom - https://basicwisdom.net Video courses - https://basicwisdom.net/courses Tutoring help - https://basicwisdom.net/tutoring Other Basic Wisdom videos - https://basicwisdom.net/videos In this video, we analyze a convertible preferred stock parity price question. Convertible securities can be tested on the FINRA SIE and Series 7 exams, plus on NASAA's Series 65 and 66 exams. Achievable intro: (0:00) Video introduction: (0:35) The practice question: (0:56) Par value & dividend rate: (1:38) Percentage of par quotes: (3:20) Conversion price & ratio: (4:18) Why investors convert: (5:28) Conversion ratio, part II: (8:11) Parity price demystified: (10:01) Parity price of preferred stock: (10:28) Parity price of common stock: (12:16) Summary of both formulas: (14:49)