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In a Reorganization, Shareholders May Exchange Preferred Stock for Common

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Short Answer

In a reorganization, shareholders may exchange preferred stock for common or common for preferred stock.


Definitions:

Punishment

The weakening (decrease in frequency) of a response because it is followed by the arrival of a (presumably) unpleasant stimulus.

Noxious Stimulus

An unpleasant or harmful stimulus that causes discomfort or pain.

Aversive Stimulus

An unpleasant or harmful stimulus used to reduce or eliminate an undesirable behavior.

Weaken Response

A decrease in the strength or effectiveness of a reaction or response in a given situation.

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