Question

The shares of preferred stock issued by Saturn Corporation can be exchanged for common stock. However, any dividends in arrears are lost. Which of the following features are present in the preferred stock issued by Saturn?a. Convertibleb. Redeemablec. Cumulatived. Noncumulative

Answer 1

Answer: Option (A)

Step-by-step explanation:

Here, in this particular case we can state that the preferred stocks issued by the Saturn Corporation are convertible. Here, under this scenario the these stocks are referred to as the preferred shares which tends to include the valid option for the individual i.e. the holder to convert their shares into a proportion of the common shares after a time period.