A call feature is a feature that allows preferred stockholders to change each share into a stated number of shares of common stock.

Name: A call feature is a feature that allows preferred stockholders to change each share into a stated number of shares of common stock.
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Question

Quizplus · Accepted Answer

A call feature allows the issuing company to repurchase the preferred stock at a predetermined price, not to convert preferred stock into common stock. Conversion features, not call features, allow for the exchange into common stock.

A Call Feature Is a Feature That Allows Preferred Stockholders