A lot of cults require you to donate all your worldly possessions. Those would be cashful conversions. For cashless conversions, you have to turn to Wall Street (kind of a twist there, huh?).
In the business world, the term usually applies to things like preferred stock or convertible bonds or stock options.
Say you own preferred stock in Midnight Conversions Inc. The preferred shares are convertible into common stock under certain conditions. Those conditions come into effect and you decide to exercise the option, turning the preferred stock into a prearranged number of common shares. You don't need to buy the shares. There's no input of cash on your part. Trade in the preferred stock, get the common shares. Cashless conversion.
Related or Semi-related Video
Finance: What Is a Real Return?67 Views
finance- a la shmoop. what is a real return? like is there a fake return? you
know like the news? well kinda .real return refers to an [man frowns talking to camera]
investment return mapped against inflation. so let's say you invest in a
bond that pays five percent a year for ten years and then pays you back your
principal .boring but nice- you know like a good doctor visit. your nominal return
over that period was 5% but since inflation was 3% a year during that
period on average your real return was only 2% a year- meaning that the
performance of your investment only eked out a 2% net gain against the price of [equation]
milk gas and you know knocked off iPhones. so don't be a chump who thinks
that they're making more money than they really are, and you know keep on keeping
it real. [man sitting in chair, talks to camera]
Up Next
How do you calculate rates of return? Calculating rate of return on an investment that pays dividends can be a bit tricky. You need to look at the...
What is the difference between taxable and untaxed returns? Not all returns and investments are taxed. Some of these can be considered nontaxable i...
There’s an old saying on Wall Street: People who want to make a lot of money buy stocks. People who have a lot of money buy bonds. The amount of...
When you buy and sell something for investment purposes, whether it be a stock, artwork, gemstones, a bond, a condominium, you know that once you h...