ally7780 ally7780

19-12-2022
Business

Answered

a security that pays a fixed amount on a quarterly basis, and also allows the holder to profit if the common stock rises, is known as a:

Answer :

abhinavjh321 abhinavjh321

23-12-2022

A security that pays a fixed amount twice a year, and also allows the holder to profit if the common stock rises, is known as a Convertible bond.

What is convertible bond?

For businesses, convertible bonds offer flexible funding options. A convertible bond gives investors access to a hybrid instrument that includes the benefits of both a bond and a stock, including interest payments. The number of shares of stock you can obtain by converting one bond in this bond depends on its conversion ratio. A 5:1 conversion ratio, for instance, indicates that one bond would equal five shares of common stock.

Companies can reduce the unfavorable investor sentiment that would accompany stock offering by issuing convertible bonds. The number of outstanding shares increases and the ownership of current investors is diluted every time a corporation issues more shares or equity. To counteract unfavorable perception, the corporation could issue convertible bonds. Then, bondholders may convert to equity shares.

Know more about convertible bond

https://brainly.com/question/17173968

#SPJ4

Answer Link

Other Questions

le economy is normal the stock of Flores Corporation is expected to return 12 percent. If the economy is into a recession, the stock return is projected at a ne

All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPTO Fixed PeriodO Interest Only

Based on the capital asset pricing model (CAPM), which of the following should earn the highest risk premium? A. Diversified portfolio with returns similar to t

Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description. True Fa

All of the following are true regarding the reduced paid-up insurance nonforfeiture option for life insurance policies, EXCEPT: O With the reduced paid-up insur

Respondents to the household survey end up in one of three primary categories: employed, unemployed, or not in the labor force. • An employed person is someone

An investor has purchased 10,000 shares of a mutual fund for a total investment of $860,000. The investor has also received $20,000 in dividends and reinvested

Using the allowance method, what is the correct amount of a company's bad debt expense for the year, given the above information? O $38,000 O $36,480O $42,750 O

From the following list, identify the accounts that should be closed to Retained Earnings at the end of the fiscal year: a. Accounts Payable b. Accumulated Depr

Processes contain the business logic, also called business rules, which transforms the data and produces the required results. False True