Generally, Once a Convertible Bond Trades at a Certain Premium

question 99

True/False

Generally, once a convertible bond trades at a certain premium to its intrinsic value, or at a certain multiple of its conversion price, the bond must be converted into common stock.

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Definitions:

Strike and Lockout

Labor disputes where employees refuse to work (strike) and employers prevent employees from working (lockout) to settle disagreements, typically over employment terms.

Union Shop

A workplace where new employees must join the union representing them within a certain period of time as a condition of their employment.

Taft-Hartley Act

A 1947 U.S. federal law that restricts the activities and power of labor unions.

Collective Bargaining

Collective bargaining is a process where employers and employees negotiate terms and conditions of employment, usually through labor unions.