Stock that permits a corporation to buy back the preferred stock at some future date is known as ________.

Question

Quizplus · Accepted Answer

Redeemable preferred stock permits the corporation to buy back the preferred stock at a future date, usually at a predetermined price. Cumulative preferred stock allows unpaid dividends to accumulate and be paid in the future, participating preferred stock allows shareholders to receive dividends in addition to their fixed dividends, and convertible preferred stock can be converted into common stock at the shareholder's discretion.

Stock That Permits a Corporation to Buy Back the Preferred