Match the terms to the definitions by selecting the letter of the term.Each term may be used more than once or not at all.
-Allows preferred stock to be returned to the corporation in exchange for common stock.
A)cumulative feature
B)stock dividend
C)retired stock
D)retained earnings
E)callable feature
F)convertible feature
G)outstanding shares
H)treasury stock
I)participating feature
J)additional paid-in capital

Question

Quizplus · Accepted Answer

The convertible feature of preferred stock allows the stockholders to convert their preferred shares into a predetermined number of common shares, typically at the discretion of the stockholder. This feature provides flexibility and potential for increased value if the common stock performs well.

Match the Terms to the Definitions by Selecting the Letter