Question

how will basic prices convert to market prices

Answer 1

Answer:

The market conversion price is the current price of a company's common stock when received in exchange for a convertible security. The market conversion price is determined by dividing the current market price of the convertible security by the security'sconversion ratio.

Explanation:

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Answer 2

Market price for any product or service can be derived by first adding any product/service tax to the basic price and finally deducting any product/service subsidy from that.

Explanation:

Basic price of any product or service refers to the price which does not include any product/service tax and are received by the producer from the buyer and later transferred to the government.However,government can provide any subsidy on the respective goods and services which are then added on to the basic price.Therefore,basic price does not include any taxes levied on the products or services but does take into account any product/service subsidy granted by the government to the producers.Now,when the product/service tax such as sales tax,GST etc are added to basic price and the subsidy is deducted from that result,we obtain the market price of products and services.Hence,market price for any product or service includes the basic price and the any product/service tax but exclude the product/service subsidy initially granted by the government to the producers.