What are convertible preferred shares and redeemable shares?

Convertible shares are a class of shares that can be converted into another class (e.g., from preferred to common) under conditions set in the articles of incorporation, and convertible preferred shares are preferred shares carrying such a conversion right.

Redeemable shares are a class of shares designated to be retired (redeemed) out of the company's profits, and the articles of incorporation may provide for the company to redeem them or for shareholders to request redemption. When investing, check the conditions and periods for conversion and redemption in the articles of incorporation and disclosures.