Primary Securities That Have Both Debt and Equity Characteristics Are

question 124

Multiple Choice

Primary securities that have both debt and equity characteristics are called:

• A)options
• B)convertible debt
• C)hybrid securities
• D)discount bonds

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Definitions:

Earnings Per Share

Earnings per share (EPS) is a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of profitability.

Reacquired Shares

Shares that were issued and subsequently bought back by the issuing company from the stock market or shareholders.

Common Stock

A type of equity security that represents ownership in a company, providing voting rights and dividends to shareholders.

Stockholders' Equity

The remaining interest in a corporation's assets once all debts have been subtracted.