A dilutive security is any security that increases the number of shares of common stock outstanding, which then reduces (or dilutes) earnings per share. In this discussion, you will be exploring various types of dilutive securities. Please respond to the following prompts:
• Compare and contrast stock warrants with stock rights
• What are the advantages of convertible bonds over regular bonds?
• If you were advising a company, which would you recommend: convertible bonds or bonds with detachable warrants? Support your position.