Question: The statement is made often. It is not really true, as a convertible's issue price reflects the underlying stock's present price. Further, when the bond

The statement is made often. It is not really true, as a convertible's issue price reflects the underlying stock's present price. Further, when the bond or preferred stock is converted, the holder receives shares valued at the then-existing price, but effectively pays less than the market price for those shares.

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