SIE practice questioneasyPreferred Stock - Callable
Which feature allows a corporation to repurchase its preferred shares at a predetermined price?
- AParticipating feature✓ Correct answer
- BConversion privilege
- CCumulative feature
- DCall provision
Explanation
Why A — Participating feature
The call provision allows repurchase at a set price. Conversion is for conversion to common stock; cumulative is about dividends; participating increases dividend payouts under certain conditions.
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