What feature gives the bondholder or preferred stockholder the right to exchange the bond or preferred stock for a fixed number of shares of common stock?

Name: What feature gives the bondholder or preferred stockholder the right to exchange the bond or preferred stock for a fixed number of shares of common stock?
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Question

Quizplus · Accepted Answer

Convertible securities give the holder the right to convert the bond or preferred stock into a fixed number of shares of common stock, usually at any time up until maturity or redemption.

What Feature Gives the Bondholder or Preferred Stockholder the Right