Asked by Jennaia Asenati on Apr 25, 2024
Verified
Investments in equity securities include all of the following except
A) common stocks
B) preferred stocks
C) convertible bonds
D) stock options
Equity Securities
Financial assets representing ownership interest in an entity, such as stocks, which provide the holder with voting rights and potential dividends.
Stock Options
Contracts that grant the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific time frame.
- Distinguish between equity securities that do and do not qualify as investments in securities (e.g., common stocks, preferred stocks, convertible bonds, stock options).
Verified Answer
VN
vanessa nunez tavarez5 days ago
Final Answer :
C
Explanation :
Investments in equity securities include common stocks, preferred stocks, and stock options. Convertible bonds are debt securities that can be converted into equity, but they are not classified as equity securities themselves.
Learning Objectives
- Distinguish between equity securities that do and do not qualify as investments in securities (e.g., common stocks, preferred stocks, convertible bonds, stock options).