Convertible Preferred Stock represents convertible into any other securities of the Company. Most often, the right to convert into ordinary shares at the rate and time intervals. To encourage more investors interested in shares. The preferred shares are entitled to receive dividends before common stock. However, it is limited to no more than the rate specified. To provide the opportunity to earn more profits, shares in the company is profitable. Company has the right to convert the preferred shares into ordinary shares. The difference between the two accounts may be the case, that is.
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