Convertible preference shares are normally converted into:

Question

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Convertible preference shares are generally converted into ordinary shares. This means that the owner of the preference shares can exchange them for a predetermined number of ordinary shares, usually at a fixed conversion price. This provides the shareholder with the opportunity to benefit from any potential increase in the value of the ordinary shares. Convertible preference shares are not typically converted into debentures, bonds or warrants.

Convertible Preference Shares Are Normally Converted Into