SIE practice questioneasyPreferred Stock - Callable
Which feature allows a corporation to repurchase its preferred shares at a predetermined price?
- AParticipating feature
- BConversion privilege
- CCumulative feature
- DCall provision✓ Correct answer
Explanation
Why D — Call provision
A call provision allows the issuer to repurchase preferred shares at a predetermined call price. Conversion, cumulative, and participating features address different preferred-stock rights.
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