If a corporate security can be exchanged for a fixed number of shares of stock, the security is said to be:
A)callable.
B)convertible.
C)protected.
D)putable.
E)None of the above.

Question

Quizplus · Accepted Answer

A convertible security refers to a type of investment that can be converted into another form, such as common stock. This means that the holder of the security has the option to convert it into a fixed number of shares of stock at a predetermined ratio.

If a Corporate Security Can Be Exchanged for a Fixed