1.

In the following discussion question you will evaluate alternative forms of long-term financing and their effect on the organization.

What are stock warrants and convertible debt? How do stock warrants work? How does convertible debt work? When and how are they used by organizations? Who benefits from their use?

2.

In the following discussion question you will evaluate alternative forms of long-term financing and their effect on the organization.

What are derivative instruments? Give examples of derivatives and briefly describe them. What are the various ways that companies use derivative instruments? What do companies hope to gain by using derivatives?