Conversion of bonds into shares: transferee's cost equals original bond cost and prior holding period is ignored. Section 47(x) treats conversion of a company's bonds, debentures, debenture stock or deposit certificates into that company's shares or debentures as not a transfer for capital gains purposes; the transferee's cost of the acquired shares or debentures is the cost of the original bonds or debentures, and the previous owner's period of holding is not considered for the transferee.