|
Title: Distinguish between convertible bonds and bonds issued with stock warrants. Post by: sarah963 on Jul 22, 2018 Distinguish between convertible bonds and bonds issued with stock warrants.
Title: Distinguish between convertible bonds and bonds issued with stock warrants. Post by: nhocloc on Jul 22, 2018 Convertible bonds restrict the ownership of the security to either the bonds or the common stock but require no additional cash. Bonds issued with stock warrants allows the owner of the bonds to maintain ownership of both the bonds and the warrants. The owner can sell either of the securities and keep the other. If the owner keeps the stock warrants, they receive a potentially bargain purchase price to own the common stock. Future cash is required to own the common stock.
|