Question

What are hybrid securities? Give an example of a hybrid security.

What are hybrid securities? Give an example of a hybrid security.

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Answer #1
Hybrid Securities
Hybrid security means a secuirity that has characteristics of one or more of Asset classes. For example a secuity that has characteristics of both Debt and Equity. For example convertible Bond is the best example for Hybrid security. It has all the features of ordinory bond and the Bond has been influenced by the changes in the Price of the securities that the Bond convertable into. Another example of Hybried security is Prefered stock.
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