A security that pays a fixed dividend and usually converts to ordinary shares at a future date is called a:

Question

Quizplus · Accepted Answer

The security described in the question is a preference share. Preference shares pay a fixed dividend and have a priority over ordinary shares in terms of receiving dividends and assets in the event of liquidation. They also usually have a conversion feature that allows them to be converted into ordinary shares at a predetermined date or price.

A Security That Pays a Fixed Dividend and Usually Converts