Convertible preferred stock is normally converted into
A) secured bonds.
B) debentures.
C) shares of common stock.
D) warrants.

Question

Quizplus · Accepted Answer

Convertible preferred stock is typically converted into shares of common stock. This means that the investor has the option to exchange their preferred shares for a predetermined number of common shares at any point. This is a common feature of many preferred stock offerings and can be attractive to investors who want the potential for capital appreciation through ownership of common stock in addition to the stability and income benefits of preferred stock.

Convertible Preferred Stock Is Normally Converted into