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What Does a Conversion Right Do

Question 59

Multiple Choice

What does a conversion right do?


A) Allows a creditor to get paid prior to shareholders if the corporation liquidates.
B) Allows a creditor to compel a corporation to convert debt owed to shares.
C) Allows a shareholder to convert preferred stock into common stock.
D) Allows shares to be purchased at a discounted price.
E) Allows stock options to be exercised.

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