If a corporate security can be exchanged for a fixed number of shares of stock, the security is said to be:
A) callable.
B) convertible.
C) protected.
D) putable.

Question

Quizplus · Accepted Answer

A security that can be exchanged for a fixed number of shares of stock is known as convertible. This feature allows the holder to convert the security into a specified number of shares, typically of the issuing company's stock, under certain conditions.

If a Corporate Security Can Be Exchanged for a Fixed