The Unemployment of Some Groups, Such as Low-Skill Workers, May

question 280

True/False

The unemployment of some groups, such as low-skill workers, may increase as a result of the imposition of a minimum wage.

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Definitions:

Conversion Premium

The additional cost over the current market value of a convertible security that an investor pays to have the option to convert it into a set number of shares.

Conversion Price

The predetermined price per share at which a convertible bond or preferred stock can be converted into common stock.

Current Price

The market value of a stock, bond, or commodity at which it can be bought or sold at a particular time.

Conversion Ratio

The number of shares an investor gets for converting a convertible security into common stock.