Shareholders.Redeemable preferred shares are to the corporation as retractable preferred shares are to shareholders.What are Redeemable Preferred Shares?Redeemable preferred shares are a form of equity security that pays dividends and has a preferential right to payment of corporate assets in the case of bankruptcy. The term "redeemable" refers to the fact that the issuing firm has the option of buying the shares back from the holder at a predetermined price at some point in the future.What are Retractable Preferred Shares?Retractable preferred shares, on the other hand, are preferred shares that a corporation has issued that allow the shareholder to redeem them at a predetermined price on a predetermined date. In other words, retractable preferred shares allow investors to exchange their preferred shares for cash after a certain period has passed.