Preferred shares that give the shareholders the option of exchanging their preferred shares for common shares at a specified rate are known as:
A) Callable preferred shares.
B) Convertible preferred shares.
C) Cumulative preferred shares.
D) Participating preferred shares.
E) Noncumulative preferred shares.

Question

Quizplus · Accepted Answer

Convertible preferred shares allow shareholders to exchange their preferred shares for common shares at a predetermined rate.

Preferred Shares That Give the Shareholders the Option of Exchanging