Conversion of a convertible security may be forced by the issuing company by
A)raising the interest rate
B)calling the securities for redemption
C)lowering the dividend on common stock
D)none of these are methods of forcing conversion

Question

Quizplus · Accepted Answer

The issuing company can force conversion of convertible securities by calling the securities for redemption, which requires the holder to either convert or redeem their securities for cash. Changing the interest rate or dividend on common stock would not directly force conversion.

Conversion of a Convertible Security May Be Forced by the Issuing