Question

If the corporation has issued bonds, they would be shown on the the section. Which may the investor exchange for the issuer's common stock, at the investor's option? convertible preferred flexible preferred cumulativinpreferred stock callable preferred stated preferred Which may the investor exchange for the issuer's common stock, at the investor's option? convertible preferred flexible preferred cumulativinpreferred stock callable preferred stated preferred

Answer 1

A convertible bond is the type that can be exchanged for an issuer's common stock at the investor's option, offering flexibility to investors while allowing the corporation to raise capital.

Step-by-step explanation:

The type of bond an investor may exchange for the issuer's common stock at the investor's option is called a convertible bond.

This is different from other types of preferred stock or bonds which may have various features but do not convert into common stock.

A corporation accesses financial capital by borrowing from banks, issuing bonds, or issuing stocks. Bonds come with a commitment to scheduled interest payments regardless of income, while issuing stock results in the sale of company ownership and responsibility to a board of directors and shareholders.