A direct conversion of one ownership type to another of an underlying asset without the investor having to put out initial cash. Many conversions are automatically started on specific dates based on the original contract and may impact an entire class of contracts or shares. Some types of cashless conversions include preferred shares to common shares, stock options to common stock, and warrants to stock. There is no initial outlay of cash necessary by investors as many transactions will be immediately profitable for the investor. Cost that may be involved will often be paid from the conversion's proceeds.