Finra Exam Series-6 Topic 9 Question 61 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 61
Topic #: 9

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:

Acall feature.

Bwarrant.

Cconvertible feature.

Dright.

Show Suggested Answer

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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Barney

3 months ago

Convertible feature? More like convertible couch, am I right? *chuckles* Anyway, yeah, that's the correct option.

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Adria

2 months ago

Definitely, it's like having the option to transform your security into something else.

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Mattie

2 months ago

I think it's similar to a convertible couch, but in finance terms.

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Deandrea

2 months ago

Yeah, convertible feature allows bondholders to exchange for common stock.

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Carma

3 months ago

The convertible feature is definitely the right answer. I remember learning about that in my finance class. Easy peasy!

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Elvera

26 days ago

I remember discussing this in my finance class too, it's the convertible feature.

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Glory

27 days ago

No, it's definitely the convertible feature.

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Alyce

29 days ago

I think it's a warrant, actually.

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Ettie

1 months ago

I agree, the convertible feature is the correct answer.

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Alica

1 months ago

Definitely, it gives bondholders more flexibility and potential upside.

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Elza

1 months ago

I think it's a smart strategy for both the company and the investors.

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Janine

1 months ago

It's a great way for investors to potentially benefit from the company's growth.

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Dudley

3 months ago

I agree, the convertible feature allows bondholders to exchange their securities for common stock.

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Royce

3 months ago

I'm not sure, but I think it could also be B) warrant, as warrants give the holder the right to buy common stock at a specific price.

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Wilburn

3 months ago

I agree with Latanya, because convertible feature allows bondholders to convert their securities into common stock.

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Latanya

3 months ago

I think the answer is C) convertible feature.

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Julie

3 months ago

Hmm, I was torn between the convertible feature and the warrant, but the convertible feature makes more sense. It gives the holder the option to convert.

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Barney

2 months ago

Yes, the warrant gives the holder the right to buy stock at a certain price, while the convertible feature allows for conversion.

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Ria

3 months ago

I agree, the convertible feature allows the holder to convert their security into common stock.

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Jess

3 months 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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