When the issuing corporation retains the right to repurchase shares of preferred stock at a specified price,the preferred stock is said to be

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When a corporation retains the right to repurchase shares of preferred stock at a specified price, it is said to be callable. This means that the corporation can "call back" the shares and buy them back from the shareholder at the agreed-upon price. This feature is often included in preferred stock to give the issuing corporation more flexibility and control over its capital structure.

When the Issuing Corporation Retains the Right to Repurchase Shares