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Hirt/Block Cover
Fundamentals of Investment Management, 7/e
Geoffrey A. Hirt, DePaul University
Stanley B. Block, Texas Christian University

Convertible Securities and Warrants

Chapter Objectives

  1. Understand why investors are attracted to convertible securities and warrants.
  2. Explain how convertible securities values are determined.
  3. Describe how investors may be forced to convert bonds or preferred stock into common stock.
  4. Explain the advantages and disadvantages of convertible securities to the corporate issuer.
  5. Describe the accounting requirements associated with convertibles.
  6. Explain why warrants represent highly speculative investments.