The similarities between convertible securities and warrants include all of the following except:
A)both tend to reduce agency costs
B)the purpose of both is the deferred issuance of common stock
C)both give the company full control over when the common stock is issued
D)all of these answers are correct

Question

Quizplus · Accepted Answer

Convertible securities and warrants do not give the company full control over when the common stock is issued, as the timing is often determined by the holder's decision to convert or exercise.

The Similarities Between Convertible Securities and Warrants Include All of the Following