Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders is called:
A)Convertible preferred stock.
B)Callable preferred stock.
C)Premium stock.
D)Cumulative preferred stock.
E)Participating preferred stock.

Question

Quizplus · Accepted Answer

Callable preferred stock gives the issuing corporation the option to retire the stock by paying a specified amount to the preferred shareholders.

Preferred Stock That the Issuing Corporation at Its Option May