Fundamentals of Investment Management, 7/e
Convertible Securities and Warrants
- Understand why investors are attracted to convertible securities and warrants.
- Explain how convertible securities values are determined.
- Describe how investors may be forced to convert bonds or preferred stock into common stock.
- Explain the advantages and disadvantages of convertible securities to the corporate issuer.
- Describe the accounting requirements associated with convertibles.
- Explain why warrants represent highly speculative investments.