When shares of preferred stock may be redeemed by the corporation at a certain price,the shares are said to be
A) cumulative.
B) nonconvertible.
C) convertible.
D) callable.

Question

Quizplus · Accepted Answer

When shares of preferred stock may be redeemed by the corporation at a certain price, they are said to be callable. Callable preferred stock gives the issuing company the option to call in, or redeem, the shares of the stock at a set price after a particular date.

When Shares of Preferred Stock May Be Redeemed by the Corporation