- Hybrid securities combine features of both debt and equity instruments (e.g., convertible bonds, preferred stock, warrants). (Statement i is correct) - Common stock represents pure equity ownership, not a hybrid security. (Statement ii is incorrect) - Holders of preferred stock have priority over holders of common stock in receiving dividends and in the distribution of assets upon liquidation. (Statement iii is incorrect) - Hybrid securities, like convertible bonds or preference shares, are indeed a method for companies or banks to raise capital (borrow or issue shares with debt-like features) from investors. (Statement iv is correct)