If a Company Offers Additional Considerations to Convertible Bondholders in Order

question 134

Multiple Choice

If a company offers additional considerations to convertible bondholders in order to encourage conversion, it is called a(an) :

• A) forced conversion.
• B) sweetener.
• C) additional conversion.
• D) end conversion.

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Definitions:

Corporate Sector

Refers to the segment of an economy comprised of private and publicly traded corporations, involved in commercial and industrial activities.

Noncorporate Sector

Parts of the economy that are not incorporated as businesses, including households, sole proprietorships, and some partnerships.

Excess Burden

The amount by which the burden of a tax exceeds the total revenue collected. Also called deadweight loss.

Tax Revenue

The revenue collected by governments from taxes.