Other ssues with Convertible Securities Virtually all convertible securities provide for a call price, which allows the company to force conversion when the security market value is significantly above the call price Almost all convertible bond issues are subordinated to other creditors which allows a lender to treat convertibles as a part of the equity base when evaluating the financial condition of the issuer. The potential dilution effect is recognized by investors who evaluate earnings based on a diluted earnings per share 22-1022-10 Other Issues with Convertible Securities Virtually all convertible securities provide for a call price, which allows the company to force conversion when the security market value is significantly above the call price. Almost all convertible bond issues are subordinated to other creditors, which allows a lender to treat convertibles as a part of the equity base when evaluating the financial condition of the issuer. The potential dilution effect is recognized by investors who evaluate earnings based on a diluted earnings per share