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 the issuing company can buy back from the shareholders at a predetermined price and time, according to the terms set out at the time of issuance. This feature provides companies with flexibility to reduce their equity and dividend obligations when it suits their financial strategy.

The Type of Preferred Share That Can Be Bought Back