Blends the characteristics of both debt and equity

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Reference no: EM13826323

1. A hybrid security is neither debt nor equity but instead derives its value from an nderlying asset.

True or False

2. Preferred stock is considered a hybrid security because it blends the characteristics of both debt and equity,

True or False

3. A hybrid security is a form of debt or equity financing that possesses characteristics of both debt and equity.

True or False

4. An option is a security that is neither debt nor equity but derives its value from an underlying asset that is often another security

True or False

Reference no: EM13826323

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