Preferred stock that can be exchanged for a specified number of units of another security is best described as exchangeable preferred stock.

Question

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Preferred stock that can be exchanged for a specified number of shares of another security is best described as convertible preferred stock, not exchangeable. Exchangeable preferred stock typically refers to preferred shares that can be exchanged for another type of security of a different company, not just a different class of shares within the same company.

Preferred Stock That Can Be Exchanged for a Specified Number