Preference shares in case the holders of these have a right to convert their preference shares into ...........

General Accounting Principles Accounting for Shares

Preference shares, in case the holders of these have a right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called

Cumulative Preference Share

Non-cumulative Preference Share

Convertible Preference Share

Non-convertible Preference Share

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Explanation:

Convertible preference shares give the preference shareholders the right to convert their shares into a specified number of common shares. The ratio of how many common shares an investor will get for each preference share is called conversion ratio. An investor has many advantages in buying convertible preference shares instead of directly buying common shares.