Question

Special contractually granted features can make preferred stock:

O redeemable
O extraordinary
O convertible
O cumulative

Answer 1

Preferred stock can have special features like being redeemable, convertible, and cumulative, giving it unique advantages over common stock.

Step-by-step explanation:

Special contractually granted features can make preferred stock:

• Redeemable
• Extraordinary
• Convertible
• Cumulative

Preferred stock may carry special features not found in common stock. Redeemable preferred stock gives the issuer the right to buy back the stock at a certain price after a specified date. Convertible preferred stock can be exchanged for a predetermined number of shares of common stock. Cumulative preferred stock includes a provision that requires the company to pay all dividends, including any that were missed or deferred, before dividends can be distributed to common shareholders.