Which of the following is not a typical characteristic of a convertible preferred stock? A) They are cumulative but not participating. B) The conversion privilege normally expires before maturity. C) They have no sinking fund or purchase fund. D) They have a fixed conversion rate. E) There is generally no waiting period before conversion can take place.

Question

Quizplus · Accepted Answer

The conversion privilege of a convertible preferred stock typically does not expire before maturity. Rather, it can be exercised at any time before the maturity date. Therefore, B is not a typical characteristic of convertible preferred stock. A, C, D, and E are typical characteristics of convertible preferred stock.

Which of the Following Is not a Typical Characteristic of a Convertible