Series 7: 1.3.3. Issuance Of Preferred Stock

1.3.3. Issuance of Preferred Stock

Companies generally issue preferred stock when the sale of bonds or common stock is not feasible. For example, a company seeking to acquire the assets of another company in a merger may issue preferred stock to use in exchange for the other company’s assets so as not to dilute its own voting control. A company with unstable earnings may issue preferred stock becau