An "equity kicker" most often refers to a:
A) bond with conversion privileges.
B) preferred stock offering with conversion privileges.
C) warrant.
D) lettered common stock.
E) None of these.

Question

Quizplus · Accepted Answer

An equity kicker refers to an additional benefit that is often offered alongside a loan or investment. In the context of finance, an equity kicker typically refers to a warrant, which is essentially an option to buy shares in a company at a certain price. This means that if the company's stock price rises above that price, the holder of the warrant can buy the stock at the lower price and sell it at the higher price, making a profit. Therefore, a warrant is the best choice as it matches the definition of an equity kicker.

An "Equity Kicker" Most Often Refers to A