Convertible debt can turn to ______ when money is received from a venture capitalist.

Question

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Convertible debt is a type of financing where a loan is given by an investor to a company but can be converted into equity (i.e. stock) at a later point in time, typically when the company receives funding from a venture capitalist. Therefore, when money is received from a venture capitalist, the convertible debt will turn into stock.

Convertible Debt Can Turn to ______ When Money Is Received