Which of the following are also referred to as a hybrid security?
A)Cumulative preferred shares
B)Convertible bonds
C)Preferred shares
D)All of the above

Question

Quizplus · Accepted Answer

All of the options listed are considered hybrid securities. Cumulative preferred shares have features of both debt and equity, convertible bonds have features of both debt and equity because they can be converted into common stock, and preferred shares have features of both debt and equity because they pay a fixed dividend like a bond but also have equity characteristics such as voting rights.

Which of the Following Are Also Referred to as a Hybrid