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Basic Question 0 of 12

Which type of common shares is the least risky?

A. Normal common shares
B. Putable common shares
C. Callable common shares

User Contributed Comments 3

User Comment
aniketcpp Putable common share is least risky for investor perspective,but high risky for company perspective.Right?
jonan203 yes
thevinu Answer depends from your standpoint as an investor and a company.
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Edward Liu

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Learning Outcome Statements

explain the swap rate curve and why and how market participants use it in valuation;

calculate and interpret the swap spread for a given maturity;

describe short-term interest rate spreads used to gauge economy-wide credit risk and liquidity risk;

CFA® 2025 Level II Curriculum, Volume 4, Module 26.