Conversion Parity Price - a conversion parity price is the price a shareholder pays to a convertible security and then uses his right to exercise his conversion option... A convertible security is a preferred stock, bond or debenture that is changeable into a common stock by the shareholder. The conversion parity price is equal to the convertible, then divided by the conversion ratio. The conversion ratio are the number of shares that eh convertible can be converted into. Another name for a Conversion Parity price is Market Conversion Price. Although conversion parity price is the official name, Market Conversion Price is used more often.