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Finra Exam Series-6 Topic 9 Question 61 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 61
Topic #: 9
[All Series-6 Questions]

A feature that gives a bondholder or the owner of preferred stock of a corporation the option to exchange his security for shares of the common stock of the firm is called a:

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Suggested Answer: C

If Mr. Gaunt believes he is still due money from Savvy, and Savvy disagrees, Ari has six years to submit his claim to arbitration under FINRA's Code of Arbitration. Ari cannot sue Savvy in a court of law, and the decision of the arbitration panel is final.


by Mireya at Jul 08, 2023, 10:14 AM

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Jess
4 days ago
I think the convertible feature is the correct answer here. It allows bondholders or preferred stockholders to exchange their securities for common stock.
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Roselle
8 days ago
I'm not sure, but I think it could also be B) warrant. Warrants also give the holder the option to buy common stock at a specific price.
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Isaiah
12 days ago
I agree with Ling, convertible feature allows bondholders to exchange their security for common stock.
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Ling
16 days ago
I think the answer is C) convertible feature.
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