An exchange offer may:
A)allow customers a 30 day money-back guarantee on the firm's product.
B)allow customers a 90 day warranty on the firm's product from defects.
C)allow bondholders to exchange some debt for stock.
D)allow stockholders to exchange some of their stock for debt.
E)Both C and D.

Question

Quizplus · Accepted Answer

An exchange offer typically refers to a transaction where one type of security is exchanged for another. Option A and B do not relate to securities exchange, while options C and D each describe only one side of an exchange offer. Only option E correctly encompasses both possibilities, where bondholders can exchange debt for stock and stockholders can exchange stock for debt.

An Exchange Offer May