Equity Investments Q140

140Which of the following statements is least accurate?

A
Investors prefer to invest in putable common shares rather than callable common shares.
B
The issuing company is obligated to buy callable common shares at a predetermined price.
C
Putable common shares facilitate raising capital because of their appeal to investors over callable common shares.

Option : B
Explanation : The issuing company has the option and is not obligated to buy callable common shares at a predetermined price.

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