A Preference Share That the Issuing Corporation at Its Option

question 133

Multiple Choice

A preference share that the issuing corporation at its option may retire by paying a specified amount to the preference shareholders is called:

• A) Convertible preference share.
• B) Callable preference share.
• C) Premium share.
• D) Cumulative preference share.
• E) Participating preference share.

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Definitions:

Discount

A reduction in the price of goods or services offered by a seller, or the amount by which a bond is sold below its par value.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Statement

A formal account or declaration of financial position or transactions, or a declaration of facts or opinions.

Company

A legal entity formed by individuals, stockholders, or shareholders, with the purpose of operating for profit, engaging in commercial and industrial activities.