Preferred shares that permit early retirement, with the typical retirement date set at 5 years, are best described as:
A) straight preferred share.
B) retractable preferred stock.
C) soft retractable preferred stock.
D) mandatory redeemable preferred stock.

Question

Quizplus · Accepted Answer

Retractable preferred stock allows the holder the option to sell the shares back to the corporation at a predetermined price on a specified date, typically before the maturity date, which aligns with the description of early retirement with a typical retirement date set at 5 years.

Preferred Shares That Permit Early Retirement, with the Typical Retirement