Complex financial instruments make the distinction between debt and equity
A) easier to define.
B) harder to define.
C) less important.
D) irrelevant.

Question

Quizplus · Accepted Answer

Complex financial instruments, such as convertible bonds and preferred stocks, have features of both debt and equity. This can make it more difficult to classify them as strictly one or the other, making the distinction between debt and equity harder to define.

Complex Financial Instruments Make the Distinction Between Debt and Equity