Which type of preferred stock can be exchanged for common stock at the stockholder's option?
A) None of these
B) Convertible
C) Participating
D) Cumulative
E) Callable

Question

Quizplus · Accepted Answer

Convertible preferred stock is the type of preferred stock which can be exchanged for common stock at the stockholder's option. This means that the investor can convert their preferred stock into a predetermined number of common shares at a specified conversion price. This feature is attractive to investors as it provides them with the ability to participate in any potential future growth of the company's stock.

Which Type of Preferred Stock Can Be Exchanged for Common