For Economists, the Word "Utility" Means

question 51

Multiple Choice

For economists, the word "utility" means

• A)versatility and flexibility.
• B)rationality.
• C)pleasure or satisfaction.
• D)purposefulness.

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Definitions:

Conversion Premium

The extra amount a investor pays over the convertible security's current value to convert it into shares of stock.

Conversion Price

The conversion price is the predetermined price at which a convertible bond or preferred stock can be converted into common shares of the issuing company.

Conversion Ratio

The number of shares an investor receives upon converting a convertible security, like convertible bonds or preferred stock, into common stock.

Conversion Value

The worth of a convertible security if it were converted into the underlying stock at the current market price.