A convertible security is almost always
A)a security that can be converted into any other type of security.
B)a debt security that can only be converted into preferred stock.
C)a security that can be converted into common stock at the holder's option.
D)a security that can be converted into common stock only at the option of the issuing corporation.

Question

Quizplus · Accepted Answer

A convertible security is a type of security that can be converted into another type of security at the option of the holder. Typically, convertible securities are debt securities that can be converted into shares of common stock at a predetermined price or ratio. Therefore, choice C is the accurate definition of a convertible security.

A Convertible Security Is Almost Always