Callable preferred shares give the shareholders the option of exchanging their preferred shares into common shares at a specified rate.

Name: Callable preferred shares give the shareholders the option of exchanging their preferred shares into common shares at a specified rate.
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Question

Quizplus · Accepted Answer

Callable preferred shares give the issuing company the right, but not the obligation, to buy back the shares at a predetermined price after a certain date, not the shareholders the option to convert into common shares.

Callable Preferred Shares Give the Shareholders the Option of Exchanging