A form of debt or equity financing that possesses characteristics of both is called a(n)
A) derivative security.
B) hybrid security.
C) option.
D) operating lease.

Question

Quizplus · Accepted Answer

A hybrid security possesses characteristics of both debt and equity financing, incorporating features such as adjustable interest rates and convertible options. It can provide companies with increased flexibility in financing their operations, but also comes with additional complexities for investors and issuers.

A Form of Debt or Equity Financing That Possesses Characteristics