Compare convertible debt to convertible preferred stock. Which of them do you think is the better way to finance a venture? Give reasons and examples to support your answer.

Convertible security is usually a bond or a preferred stock that can be converted into a
different security – typically company shares. In majority of the cases, the holder of the
security decides whether or not to convert, and the time for the same. While in some cases, a
company decides for the same. Convertible securities are generally used by the companies to
raise money. Convertible note or debenture can be defined as a type of bond or debt
instrument that can be converted into common stocks at an agreed price. It is a hybrid
security with both equity and debt like feature. Like other debt holders,...