Convertibles can be used as a form of deferred common stock financing.

Name: Convertibles can be used as a form of deferred common stock financing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Convertibles are a type of security that can be converted into common stock at a later date. This provides investors with the potential for equity upside while also giving the issuer the benefit of financing through a debt instrument. As such, convertibles can be used as a form of deferred common stock financing.

Convertibles Can Be Used as a Form of Deferred Common