Refer to Bob Wright. If Bob Wright paid $10 per share for his preferred stock, and if common stock was selling at $4 per share on the date of conversion, compute the amount that Bob Wright's investment increased in value.​

Convertible Preferred Stock

Preferred shares that can be converted into a predetermined number of a company's common shares, usually at the shareholder's discretion.

Common Stock

A form of corporate equity ownership, a type of security that represents an ownership interest in a corporation, entitling the holder to a share of the company's profits.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect its market value.