Finra Exam Series-7 Topic 4 Question 2 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 2
Topic #: 4

[All Series-7 Questions]

Convertible preferred stock has all of the following characteristics except:

Aa lower dividend rate than non-convertible preferred

Ba dilution of earnings if converted into common stock

Ca requirement for shareholders to always accept the call price when called

Drequired dividend payments to shareholders before any dividends are paid to holders of common stock

Show Suggested Answer

Suggested Answer: C

a requirement for shareholders to always accept the call price when called. All of the other statements are true ''except'' this one. Convertible preferred shareholders have a n opportunity to convert to common stock. There is no forced call price.

by Myra at May 05, 2022, 09:18 AM

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