IFSE Institute Canadian Investment Funds Course Exam CIFC Question # 56 Topic 6 Discussion
CIFC Exam Topic 6 Question 56 Discussion:
Question #: 56
Topic #: 6
Evan owns retractable preferred shares of Ingram Corp. Which statement CORRECTLY describes a key feature of Evan's shares?
A.
Gives Evan the option to convert the Ingram Corp preferred shares into a fixed number of common shares at a predetermined price within a specified period.
B.
Offers Evan the opportunity to receive additional dividends if Ingram Corp's profit exceeds a stated level.
C.
Entitles Evan to sell the shares back to Ingram Corp at a pre-determined price and time in the future.
D.
Allows Ingram Corp to buy back the preferred shares at a pre-determined price within a defined period.
Retractable preferred shares are a type of preferred stock that lets the issuer force the redemption of the shares at a set price and time. The issuer can pay cash or common shares to the retractable preferred shareholders.
References = Retractable Preferred Shares: What it is, How it Works, Example, What are Retractable Preferred Shares? Definition, And How Does it Work? - CFAJournal, Retractable Preferred Shares | Example | Feature - Accountinguide
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