Primary securities that have both debt and equity characteristics are called:
A) hybrid securities
B) discount bonds
C) options
D) convertible debt

Question

Quizplus · Accepted Answer

Hybrid securities combine features of both debt and equity, such as having fixed income payments like debt but also the potential for capital appreciation like equity. Examples of hybrid securities include preferred stock and convertible bonds.

Primary Securities That Have Both Debt and Equity Characteristics Are