The number of ordinary shares received by the holder of each converting preference share is known as the:
A)converting ratio.
B)share ratio.
C)conversion ratio.
D)perpetual ratio.

Question

Quizplus · Accepted Answer

The number of ordinary shares received by the holder of each converting preference share is known as the conversion ratio. A converting ratio and perpetual ratio are not commonly used terms in this context, and a share ratio is a less specific term that could refer to various things such as the proportion of shares held by different investors.

The Number of Ordinary Shares Received by the Holder of Each