There is no immediate cash flow impact from the conversion of convertible debt.

Name: There is no immediate cash flow impact from the conversion of convertible debt.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

When convertible debt is converted, it typically results in an increase in the number of outstanding shares of stock, which dilutes the ownership percentage of existing shareholders. While there may be some long-term cash flow implications from this dilution, there is no immediate cash flow impact from the conversion itself.

There Is No Immediate Cash Flow Impact from the Conversion