Convertible Preferred Stock: Definition & Advantage


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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. Which of the following is NOT considered equity of the company?

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About This Quiz & Worksheet

Using the worksheet and quiz, you can see how much you know about convertible preferred stock. You need to know about the meaning of this stock and its advantages for the quiz.

Quiz & Worksheet Goals

You can assess your knowledge of:

  • Examples of equity of the company
  • Unique features of convertible preferred stock
  • Characteristics of convertible preferred stock
  • Two features of preferred stock dividends

Skills Practiced

  • Information recall - access the knowledge you have gained about the correct designation for preferred stock that might be converted into common stock
  • Reading comprehension - ensure that you draw the most important information from the lesson on convertible preferred stock
  • Interpreting information - verify that you can read information about unique qualities of convertible preferred stock and interpret it correctly

Additional Learning

If you would like to review more, access the lesson called Convertible Preferred Stock: Definition & Advantage. This lesson helps you:

  • Identify common stock benefits
  • Review ways of finding new capital
  • See what downsides there are to preferred stock