The type of preferred share that can be bought back by the company at a specified time and price is a:
A)cumulative preferred share.
B)convertible preferred share.
C)redeemable preferred share.
D)nonparticipating preferred share.

Question

Quizplus · Accepted Answer

Redeemable preferred shares are those that can be bought back by the company at a specified time and price. Cumulative preferred shares receive dividends that accumulate if they are not paid in full, convertible preferred shares can be exchanged for common shares under certain conditions, and nonparticipating preferred shares have a fixed dividend rate and do not participate in any additional profits of the company.

The Type of Preferred Share That Can Be Bought Back