You want to own equity in a Russian oil firm, but the firm does not have traded stock. If it had ___________ outstanding you could purchase them and then trade them in for shares of stock.

Question

Quizplus · Accepted Answer

Convertible bonds are a type of bond that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder. This makes them an ideal choice for someone looking to eventually own equity in a company that does not currently have publicly traded stock.

You Want to Own Equity in a Russian Oil Firm