William holds shares of preferred stock in a telecommunications company. However, given the lucrative benefits that come with holding common stock, William exchanges his shares of preferred stock with shares of common stock at the conversion price. In this scenario, William was holding _____ in preferred stock.

Question

Quizplus · Accepted Answer

William was holding convertible securities, which are preferred stocks that can be converted into common stocks at a predetermined conversion price.

William Holds Shares of Preferred Stock in a Telecommunications Company