Cartman Owns Convertible Securities in OctoCore Corp

question 58

Multiple Choice

Cartman owns convertible securities in OctoCore Corp. If the conversion ratio for the convertible securities is 37, it means that:

• A) Cartman can convert 37 percent of the convertible securities that he owns for shares of common stock.
• B) Cartman can resell the 37 percent of the convertible securities that he owns to other preferred stockholders.
• C) Cartman can exchange each convertible security that he owns for 37 shares of common stock.
• D) Cartman can liquidate each convertible security that he owns for $37.

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Definitions:

Costly

Involving high expenses; something that requires a significant amount of money to purchase or maintain.

Time

A continuous, measurable duration in which events occur in a sequence from the past, through the present, and into the future.

Money

A medium of exchange in the form of coins and banknotes; used to purchase goods and services.

Prospective Juror

An individual who is a potential candidate to serve on a jury, pending selection and vetting processes.