If a company is wanting to lessen the cost of a new security by imbedding a valuable option in the security,then the company is most likely to issue

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Convertible debt allows the investor to convert their debt into equity (usually common stock) at a later date, providing an additional valuable option to the investor. This can lower the cost of the security for the company issuing it, as it is seen as a more attractive investment opportunity. Common stock, preferred stock, and debt do not typically have this feature.

If a Company Is Wanting to Lessen the Cost of a New