Question

One of your new clients explains that she prefers investments paying income with a fixed rate of return, but also allows for the possibility of realizing greater gain potential. She would likely favor investments in

Answer 1

Answer:

B) convertible preferred shares

Explanation:

These are the options for the question

A) adjustable rate preferred shares

B) convertible preferred shares

C) common shares

D) corporate bonds

From the question, we are given an instance whereby One of your new clients explains that she prefers investments paying income with a fixed rate of return, but also allows for the possibility of realizing greater gain potential. In this case She would likely

favor investments in convertible preferred shares. Convertible preferred shares can be regarded as corporate fixed-income securities whereby an investor is allowed to turn into particular number of shares of the common stock of the firm after or on a specific date.Convertible preferred shares gives room for the owner so that the shares for a fixed number of shares can be exchanged.