SIE Exam Question 948: Answer and Explanation

Question: 948

Which of the following is a type of preferred stock in which the issuer has the right to redeem the stock at a preset price after a predetermined date?

• A. Callable preferred stock
• B. Common preferred stock
• C. Diluted preferred stock
• D. Subordinate preferred stock

Correct Answer: A

Explanation:

Callable preferred stock is a type of preferred stock in which the issuer has the right to redeem the stock at a preset price after a predetermined date.