Paralegal Margaret Is Interviewing Witness Dave About a Car Accident

question 35

Multiple Choice

Paralegal Margaret is interviewing witness Dave about a car accident he witnessed. Dave seems nervous and uncomfortable. Margaret should

• A) immediately begin questioning Dave about the details of the accident.
• B) stick strictly to her prewritten questions.
• C) spend a minute or two chatting casually.
• D) avoid small talk.

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Definitions:

Conversion Value

The monetary value of a convertible security (such as a convertible bond) if it were converted into a predetermined number of shares of common stock, generally at the discretion of the holder.

Par Value

The face value of a bond or stock, as stated on the certificate, which is the minimum stated value.

Convertible Debentures

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Conversion Price

The predetermined price at which convertible security, such as a bond or preferred stock, can be converted into a specified number of shares of common stock.