If a corporate security can be exchange for a fixed number of shares of stock, the security is said to be:
A) Callable
B) Convertible
C) Protected
D) None of the above

Question

Quizplus · Accepted Answer

If a security can be exchanged for a fixed number of shares of stock, it is called a convertible security. Callable securities can be redeemed by the issuer before the maturity date, and protected securities typically have certain measures in place to limit losses for the investor. None of these terms relate to the ability to exchange a security for shares of stock.

If a Corporate Security Can Be Exchange for a Fixed