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 Share:are preferred shares that can be exchanged for common shares at a fixed rate. This can be especially lucrative for preferred shareholders if the market value of common shares increases.

Once the shares have been exchanged, the shareholder gives up the benefit of a fixed dividend and cannot convert common shares back to preferred shares.