In Reality,there Is No Guarantee That Convertible Bondholders Will Convert

question 126

True/False

In reality,there is no guarantee that convertible bondholders will convert to common stock even if the price of the common stock does increase.

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Definitions:

Savings and Loan

A type of financial institution that specializes in accepting savings deposits and making mortgage and other loans.

Depository Institutions

Depository institutions are financial organizations, such as banks and credit unions, that accept deposits from individuals and provide loans.

Reserves

Funds that banks use to satisfy the cash demands of their customers and the reserve requirements of the Fed; reserves consist of cash held by banks plus deposits at the Fed.

Acquire Funds

The process of obtaining capital or money to finance operations, investments, or other business activities.