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ACC 291 Week 3 DQ 2
$ 15.00

. Callable preferred stock: has an embedded option allowing the issuer to call shares, either at par or at a slight premium above par. In a typical arrangement, shares are not callable for the first few years following issuance but can be called, perhaps with a month's notice, any time thereafter. As with callable bonds, the price behavior of callable preferred stock depends on whether the call option is in-the-money or out-of-the-money as well as the financial strength of the issuer.

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