Callable preferred stock gives a corporation the option of exchanging preferred shares into common shares at a specified rate.

Name: Callable preferred stock gives a corporation the option of exchanging preferred shares into common shares at a specified rate.
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Question

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Callable preferred stock gives a corporation the option to repurchase or "call" the stock at a specified price after a certain date, not to exchange it for common shares.

Callable Preferred Stock Gives a Corporation the Option of Exchanging