The market value method is used to account for the exercise of convertible preferred stock.

Name: The market value method is used to account for the exercise of convertible preferred stock.
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The market value method is not used to account for the exercise of convertible preferred stock; instead, the book value method or if specified, other methods like the if-converted method may be used, depending on the accounting standards being followed.

The Market Value Method Is Used to Account for the Exercise