S
salj67
Member
Convertibles provide higher income than ordinary shares but lower income than conventional loan stock or preference shares. This is a statement made in the core reading.
What i dont understand is how both can be possible together? Return on ordinary is more than preference and hence if return on convertibles is more than on ordinary, shouldn't it be greater than on loan stock or preference also?
What i dont understand is how both can be possible together? Return on ordinary is more than preference and hence if return on convertibles is more than on ordinary, shouldn't it be greater than on loan stock or preference also?