When Preferred Stock Carries a Redemption Privilege, the Shareholders May

question 90

Multiple Choice

When preferred stock carries a redemption privilege, the shareholders may:

• A) Purchase new shares as they become available.
• B) Exchange their preferred shares for common shares.
• C) Surrender the preferred shares for a specified amount of cash.
• D) Purchase treasury shares ahead of common shareholders.

---

Definitions:

Token Economy

A behavioral modification technique where desirable behaviors are rewarded with tokens that can be exchanged for various privileges or treats.

Behavior Modification

A therapeutic approach that seeks to change undesirable behaviors through the systematic application of the principles of learning.

Cognitive Therapy

Therapy that teaches people new, more adaptive ways of thinking and acting; based on the assumption that thoughts intervene between events and our emotional reactions.

Behavior Modification

A form of psychotherapy that uses basic learning techniques to change maladaptive behaviors to more desirable ones.