Which of the following statements best describes preferred stock?
A. Redemption of preferred stocks is allowed irrespective of whether the cost would make the corporation insolvent or not.
B. Preferred stock cannot be converted into common stock.
C. If a corporation's articles allow redemption, the corporation can buy back preferred stocks even if the holders do not wish to sell.
D. Preferred stock holders are usually granted the right to vote only in the event that dividends due are fully paid to stockholders.
Answer: C
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