The type of stock that may be exchanged for common stock is ____ stock.
A) equity
B) convertible preferred
C) preferred
D) participating preferred
E) cumulative preferred

Question

Quizplus · Accepted Answer

Convertible preferred stock has the option to be converted into common stock, while preferred stock does not have this option. Equity stock is a general term that includes both preferred and common stock, while participating preferred stock and cumulative preferred stock have unique features but do not have the option to be converted into common stock.

The Type of Stock That May Be Exchanged for Common