IFSE Institute Exam CIFC Topic 3 Question 3 Discussion

Actual exam question for IFSE Institute's CIFC exam

Question #: 3
Topic #: 3

[All CIFC Questions]

Evan owns retractable preferred shares of Ingram Corp. Which statement CORRECTLY describes a key feature of Evan's shares?

AGives Evan the option to convert the Ingram Corp preferred shares into a fixed number of common shares at a predetermined price within a specified period.

BOffers Evan the opportunity to receive additional dividends if Ingram Corp's profit exceeds a stated level.

CEntitles Evan to sell the shares back to Ingram Corp at a pre-determined price and time in the future.

DAllows Ingram Corp to buy back the preferred shares at a pre-determined price within a defined period.

Show Suggested Answer

Suggested Answer: D

by Nobuko at Jun 11, 2025, 08:45 PM

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Leoma

24 days ago

I'm not sure, but I think it might be D. Buying back shares at a predetermined price sounds familiar.

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Lizette

26 days ago

I think the correct answer is D. Ingram Corp should be able to buy back the preferred shares at a pre-determined price within a defined period. That's a key feature of retractable preferred shares.

upvoted 0 times