Preferred share can be callable by the issuing firm, in which case it is said to be ________.
A)insolvent
B)redeemable
C)insufferable
D)delinquent

Question

Quizplus · Accepted Answer

If a preferred share is callable by the issuing firm, it means that the firm has the right to redeem, or buy back, the shares from the shareholders at a predetermined price. Hence, the correct term to describe this feature is "redeemable."

Preferred Share Can Be Callable by the Issuing Firm, in Which