Asked by Brianna Sparks on Jun 30, 2024
Verified
New shares of stock are issued when a convertible bond is converted.
Convertible Bond
A type of bond that can be converted into a predetermined number of shares of the issuing company's equity at certain times during its life, usually at the discretion of the bondholder.
New Shares
New shares refer to additional stock issued by a company, either through public offerings or other means, to raise capital.
- Comprehend the effects of corporate decisions such as the issuance of new shares on current securities.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
True
Explanation :
When a convertible bond is converted, the bondholder exchanges the bond for a predetermined number of new shares of the issuing company's stock, leading to the issuance of new shares.
Learning Objectives
- Comprehend the effects of corporate decisions such as the issuance of new shares on current securities.
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