Asked by Elizabeth McGee on Jul 15, 2024
Verified
"Intent to convert" does not include an investment used as a resource that will be used whenever the need for cash arises.
Intent to Convert
The expressed or implied intention of a holder of a convertible security or instrument to change it into a different form, usually into shares of stock.
- Distinguish between different securities such as available-for-sale, held-to-maturity, and trading securities.
Verified Answer
BV
Bui Van Cao (FU HN)Jul 22, 2024
Final Answer :
False
Explanation :
An investment used as a resource that will be used whenever the need for cash arises is considered as convertible in nature and hence can be included in the "intent to convert" category.
Learning Objectives
- Distinguish between different securities such as available-for-sale, held-to-maturity, and trading securities.
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