Why do companies bother to issue convertible securities, such as convertible bonds? What's wrong with just issuing a good old plain vanilla bond rather than going through the added bother and complexity of incorporating a convertible feature? Separately, why do companies bother to issue stock warrants? Considering that such securities only create a more complex capital structure, what's the point of these things?

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Covertible bonds are corporates bonds that can be exchanged for common stock in the issuing ... View the full answer