The "convertible exchangeable" feature of preferred shares gives companies the sole right to force preferred stock holders to exchange for common stock.

Question

Quizplus · Accepted Answer

The "convertible" feature allows the holder of the preferred shares, not the company, to convert their shares into a predetermined number of common shares, typically at the discretion of the shareholder.

The "Convertible Exchangeable" Feature of Preferred Shares Gives Companies the Sole