Convertible preferred stock is preferred stock that may be exchanged for
A) cash at the option of the corporation.
B) common stock at the option of the corporation.
C) cash at the option of the stockholder.
D) common stock at the option of the stockholder.

Question

Quizplus · Accepted Answer

Convertible preferred stock is a type of preferred stock that can be converted into a specified number of shares of common stock at the option of the stockholder. Therefore, the correct answer is D, which states that convertible preferred stock may be exchanged for common stock at the option of the stockholder.

Convertible Preferred Stock Is Preferred Stock That May Be Exchanged