If a preferred stock issue has a conversion feature, the stock can be converted into _____.

Question

Quizplus · Accepted Answer

If a preferred stock issue has a conversion feature, it means that the holder of the preferred stock can convert it into common stock. This is a common feature in preferred stock issues, as it allows investors to participate in the potential upside of the company if it performs well, while also providing them with the stability and preferential treatment of a fixed dividend payment.

If a Preferred Stock Issue Has a Conversion Feature, the Stock