The Principle Device Used by the Corporation to Force Conversion

question 27

Multiple Choice

The principle device used by the corporation to force conversion

• A) is setting the conversion price above the current market price.
• B) is reducing the amount of interest payments.
• C) is buying bonds back at below par value.
• D) is a call provision.

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Definitions:

Negotiation

The process of discussing and reaching a mutual agreement between parties with differing needs or perspectives.

United States Supreme Court

The highest court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

Writ of Certiorari

An order issued by a higher court to a lower court to send up the records of a case for review, often used by the U.S. Supreme Court to select cases.

Original Jurisdiction

The authority of a court to hear a case first, before any other court has reviewed the matter.