The conversion feature on convertible preferred shares enables the shareholder to convert them to which of the following?
A) Cash.
B) Products of the company.
C) Common shares.
D) Convertible bonds.

Question

Quizplus · Accepted Answer

The conversion feature on convertible preferred shares enables the shareholder to convert them to common shares of the company at a predetermined conversion rate. This allows the investor to participate in potential future appreciation of the company's stock price.

The Conversion Feature on Convertible Preferred Shares Enables the Shareholder