Which of the following is not a typical characteristic of convertible notes?
A)debt allowing for conversion into equity (common stock or convertible preferred stock)
B)convertible at a price set by a future financing round
C)issued to allow for a delayed valuation estimate
D)seasoned firms are the primary issuers of convertible notes

Question

Quizplus · Accepted Answer

Seasoned firms are actually less likely to issue convertible notes, as they typically have access to other types of financing such as equity offerings or bank loans. Convertible notes are often used by early-stage or startup companies who may have difficulty obtaining traditional financing.

Which of the Following Is Not a Typical Characteristic of Convertible