Many preferred stocks have a provision that entitles a company to repurchase its preferred stock from their holders at stated prices over a given time period.What is the name of this provision?

Question

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The provision described in the question is known as the "callable" provision. This provision allows the issuing company to repurchase its preferred stock from its holders at a stated price over a predefined time period. A cumulative provision refers to a dividend feature that requires any unpaid dividends from previous periods to be paid before any new dividends can be issued. A putable provision allows the holder of the preferred stock to sell it back to the issuing company at a specific price. A convertible provision allows the holder to convert their preferred stock into common stock at a specific conversion ratio.

Many Preferred Stocks Have a Provision That Entitles a Company