Chapter 17

2. The dominant organized options exchange is the ________.
7. A basic characteristic of a warrant is that it improves the ____ of an issue
9. Convertible securities can usually be sold with interest rates ________ than those of other nonconvertible securities
10. Is neither debt nor equity but derives its value from an underlying asset
11. Unlike convertibles, warrants raise new capital for the firm ________ they are issued when the warrants are converted
12. A stock purchase ________ gives the holder an option to purchase a certain number of shares of common stock at a specified price over a certain period of time.
13. At the time of issuance, the issuer of a convertible security normally establishes a conversion price ____ the current market price of the firm's stock
15. A ________ feature is included as part of a bond or preferred stock that permits the holder to convert the security into a specified number of shares of common stock
16. Convertible preferred stock can be converted into
18. A ____ option gives the holder the right to buy at the contract’s strike price

1. A form of debt or equity that have characteristics of both debt and equity financing is called a
3. This type of lease is a contractual arrangement where the lessee agrees to make periodic payments to the lessor for five or fewer years for an asset's services
4. When lessors acquire leased assets by purchasing assets already owned by the lessee and leasing them back
5. A ____ option gives the holder the right to sell at the contract’s strike price
6. The exercise price or option price of a warrant is normally set ________ the market price of the firm's stock at the time of issuance
8. For puts and calls, the exercise price is called ________.
14. A capital or capitalized lease is also known as this type of lease
17. Convertible bonds normally have a ________ feature to allow the issuer to retire or encourage conversion of outstanding convertibles when appropriate