 | Chapter Objectives (See related pages)
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. |
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