- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 4. Overview of Equity Securities
- Subject 2. Types and Characteristics of Equity Securities
CFA Practice Question
Putable common shares give ______ at a pre-specified price.
B. the issuing company the option to sell its shares to its shareholders
C. investors the option to sell their shares to other investors
A. investors the option to sell their shares back to the issuing company
B. the issuing company the option to sell its shares to its shareholders
C. investors the option to sell their shares to other investors
Correct Answer: A
Investors will generally sell their shares back when the market price is below the pre-specified put price.
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