In a Reorganization, Shareholders May Exchange Preferred Stock for Common

question 130

Short Answer

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

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Definitions:

Disjunct

A component of a disjunction in logic, representing an alternative within a proposition, where if any disjunct is true, the entire statement is true.

Disjunction

The logical inclusionary operation indicating that if one or more of several propositions is true, the overall statement is true; emphasizes a different aspect of combining statements.

Biconditional

A logical statement where both parts imply each other; often phrased as "if and only if."

Component

A constituent part or element of a larger whole.