Final answer:
Convertible bonds offer holders the potential to participate in future stock price increases.
Step-by-step explanation:
The subject of this question is Business and the grade level is High School. The answer to the question is Convertible bonds.
Convertible bonds offer holders the potential to participate in future increases in stock price. These types of bonds can be converted into a specified number of shares of common stock of the issuing company at a predetermined conversion price.