A convertibility provision gives the issuing corporation the right to call in the preferred stock for redemption.

Name: A convertibility provision gives the issuing corporation the right to call in the preferred stock for redemption.
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Question

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A convertibility provision allows preferred stockholders to convert their shares into a specified number of common shares, not for the corporation to call in the stock for redemption.

A Convertibility Provision Gives the Issuing Corporation the Right to Call