A Feature of Convertible Preference Shares Is That

question 47

Multiple Choice

A feature of convertible preference shares is that:

• A) they generally convert to ordinary shares in a fixed ratio.
• B) they convert to ordinary shares based on the shares’ prices in the market.
• C) there is no discount rate applied to the price.
• D) cash is exchanged on the conversion date

---

Definitions:

Indication

A sign, condition, or factor that suggests or indicates a certain state or condition, often used in medicine to suggest the potential benefit of a specific treatment for a particular disease or condition.

Socially Smile

A developmental milestone where infants begin to smile in response to social interactions, typically emerging around 6-8 weeks of age.

Months Of Age

A measure of age typically used for infants and very young children, quantifying their life span in months rather than years.

Birth

The act or process of being born; the start of life outside the uterus.