A simple capital structure could have, in addition to common shares, a security that is a:

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A simple capital structure typically includes common shares and nonconvertible preferred shares. Nonconvertible preferred shares do not have the option to be converted into a different form of security, which keeps the capital structure straightforward. Convertible securities (like convertible preferred shares or convertible bonds) and options (like stock rights and warrants) can potentially convert into common stock, complicating the capital structure.

A Simple Capital Structure Could Have, in Addition to Common