Series 6 - Investment Company And Variable Contracts Products Representative Exam

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This type of security allows the owner to exchange each share for a fixed number of shares of common stock is

Cumulative preferred
A
Noncumulative preferred
B
Convertible preferred
C
Straight preferred
D

Explanations

Convertible preferred stock are preferred stock shares that also include an option to convert to a specified and fixed number of common shares; usually after a predefined date in the future.

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