Callable Preferred Stock: Definition & Example


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What does the 'preferred' in callable preferred stock mean?

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1. Which of the following is a major risk to investors in buying callable preferred stock?

2. The price that a corporation will pay to buy back an investor's shared of callable preferred stock is known as the _____.

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About This Quiz & Worksheet

The quiz and worksheet are tools designed to check your knowledge of callable preferred stock. To pass the quiz, you need to know how this stock works and what 'preferred' means in this context.

Quiz & Worksheet Goals

You'll be assessed on the following topics:

  • The big risk of buying callable preferred stock
  • Name for the price paid by a corporation to buy back an investor's share of callable preferred stock
  • The meaning of 'preferred'
  • Interpreting a sample scenario involving a corporation that issued callable preferred stock shares

Skills Practiced

  • Information recall - access the knowledge you have gained about what callable preferred stock offers
  • Reading comprehension - ensure that you draw the most important information from the lesson on callable preferred stock
  • Interpreting information - verify that you can read information about why there's a risk of buying callable preferred stock and interpret it correctly

Additional Learning

Learn more by using the lesson called Callable Preferred Stock: Definition & Example. Use this lesson to complete the following objectives:

  • Determine how common shares of stock work
  • Figure out why callable preferred stock is unique
  • Review an example of callable preferred stock