3 ms·
There are hybrids all over the place. Preferred stock is a classic example. But there’s still a basic framework before you get into the messy middle. Taxonomie
by bradleyjg 6y ago
There are hybrids all over the place. Preferred stock is a classic example.
But there’s still a basic framework before you get into the messy middle. Taxonomies are a useful technology, calling everything a loan obscures more than it clarifies.
- ghaff 6y agoAlso convertibles. And I don't disagree even though I had a long ago finance professor who hammered on the point that a lot of financial instruments weren't necessarily that distinct from each other just because they have different names. But, yes, we can generalize about the distinct characteristics of normal debt and normal equity.