Practicing Success
Which of the following shareholders get their capital returned after some specified time? |
Cumulative Preference Shares Non-cumulative preference share Non-convertible preference share Redeemable Preference Shares |
Redeemable Preference Shares |
Redeemable preference shares are those when preferred shares of stocks are issued to shareholders, a call option may be embedded in them. These types of preferred stocks are called Redeemable Preference Shares because the company has the option to redeem them later. They do not have a maturity date and are retired by the company. |