Refer to Bob Wright. If common stock was selling at $4 per share on the date of conversion, compute Bob Wright's common stock worth.​

Convertible Preferred Stock

Preferred stock that gives the owner the option of converting those preferred shares into a stated number of common shares.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, giving voting rights and a share in the profits.

Par Value

Par Value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.