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the reasons companies choose to offer Preferred Stock

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What are some of the reasons companies choose to offer Preferred Stock?

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The reason companies choose to offer preferred stocks are determined.

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Reasons to offer preferred stock:

Companies prefer to give preferred stock because they know that these types of stocks will appeal to those investors who want income and security. On the other hand, issuing preferred stock rather than bonds provides the company with flexibility. If the company is in financial peril, it can suspend payment of dividends to preferred stockholders, but not to bondholders. Frequently, preferred stock is ...

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