Convertible Preferred Stock: Formula & Examples


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question 1 of 3

Identify the correct designation for preferred stock that may be converted into common stock.

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1. Select the correct characteristics of convertible preferred stock.

2. Select which of the following is not considered equity of the company.

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About This Quiz and Worksheet

With the aid of this quiz and worksheet combination, you can find out how well you understand convertible preferred stock. Questions address the characteristics of convertible preferred stock, as well as some key features of the dividends of preferred stock.

Quiz and Worksheet Goals

Check how much you know about the material with quiz questions on these topics:

  • Characteristics of convertible preferred stock
  • Equity of a company
  • Unique features of convertible preferred stock
  • Features of preferred stock dividends

Skills Practiced

  • Defining key concepts - ensure that you can name the designation for preferred stock that can be changed into common stock
  • Knowledge application - use what you know to answer questions about company equity
  • Information recall - remember what you have learned about the unique features of this type of stock

Additional Learning

For even further review, open the lesson titled Convertible Preferred Stock: Formula & Examples. This lesson looks at the other topics mentioned in the list below:

  • Preferred stock vs. convertible preferred stock
  • Conversion ratios
  • Positive and negative aspects of convertible stock