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Exam Series 7 All Questions

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Exam Series 7 topic 1 question 12 discussion

Actual exam question from FINRA's Series 7
Question #: 12
Topic #: 1
[All Series 7 Questions]

Convertible preferred stock has all of the following characteristics except:

  • A. a lower dividend rate than non-convertible preferred
  • B. a dilution of earnings if converted into common stock
  • C. a requirement for shareholders to always accept the call price when called
  • D. required dividend payments to shareholders before any dividends are paid to holders of common stock
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Suggested Answer: C 🗳️
a requirement for shareholders to always accept the call price when called. All of the other statements are true "except" this one. Convertible preferred shareholders have a n opportunity to convert to common stock. There is no forced call price.
by lolojepu at April 6, 2025, 1:54 a.m.

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