Practicing Success
Which of the following preference shares are issued with a repayment option within a stipulated time period? |
Cumulative preference shares Participating preference shares Redeemable preference shares None of these |
Redeemable preference shares |
Redeemable preference shares, also known as redeemable preferred shares or redeemable preferred stock, are a type of financial instrument issued by corporations as a form of financing. They combine features of both equity and debt securities. These shares are considered a type of preferred stock because they come with certain preferential rights and benefits, but they also have a unique characteristic that allows the issuing company to repurchase or "redeem" them from shareholders at a specified future date or under certain conditions. |