Which of the following is an example of a hybrid security?
A) Mutual fund
B) Convertible security
C) Exchange-traded fund (ETF)
D) Exchange-traded note (ETN)
E) Real estate

Question

Quizplus · Accepted Answer

A convertible security is an example of a hybrid security because it combines characteristics of both debt and equity. It can be converted into a predetermined number of shares of the issuer's stock at the option of the holder. Mutual funds, ETFs, and ETNs are not examples of hybrid securities because they are all either equity or debt instruments. Real estate is also not an example of a hybrid security as it is an asset class.

Which of the Following Is an Example of a Hybrid