Financial Glossary what is cover-ratio


Cover Ratio

The number of warrants required to exercise into one share, or one unit of the underlying asset. Also known as the subscription ratio, exercise ratio, conversion ratio, entitlement ratio, parity ratio, multiplier, or set. The terminology is not clear as some issuers express the ratio as an inverse, so that a cover ratio of 100 may be written as 0.01.
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