If preferred stockholders have the right to sell their stock for cash to the corporation it is referred to as

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If preferred stockholders have the right to sell their stock for cash to the corporation, it is referred to as redeemable. Callable stock refers to the corporation's right to buy back the stock from the stockholders. Convertible stock refers to the stockholders' right to convert their preferred shares into common shares. Participating stock refers to the stockholders' right to receive additional dividends beyond their fixed dividend rate.

If Preferred Stockholders Have the Right to Sell Their Stock