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Sweetener

Reviewed by Vineeth | Updated on Sep 30, 2020

Catalogue

Introduction

Sweeteners are special features in the form of preferred stock or bond to debt instruments to make them look lucrative to the investors.

Understanding Sweetener

The most popular sweeteners are rights and warrants. These sweeteners allow the investors to convert their securities into stocks later. Also, shares might be issued at a price below its actual market price. Other names of sweeteners are wrinkles, whistles, and kickers.

Highlights of Sweeteners:

  1. Sweeteners are additional features that come attached to debt instruments to make them attractive.

  2. Companies that are struggling to find investors can make use of sweeteners through issuing debt instruments at luring prices.

  3. Warrants and rights are the most popular sweeteners used by companies issuing debt instruments.

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