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convertible exchangeable preferred stock

convertible exchangeable preferred stock definition - finance
Preferred stock that can be exchanged at the issuerÂ’s option for convertible debt that has the same yield and conversion terms. A convertible exchangeable preferred stock is designed to permit an issuer to switch to a tax-deductible obligation when its earnings become taxable.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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