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Unformatted text preview: common stockholders are paid only after the companys board of directors has made a list of all stockholders and voted on the payments. As a shareholder, I would want to invest in preferred stock because there is less risk with preferred stock and preferred stock would allow me to receive a steady (or reliable) source of revenue. As a corporation, I would rather issue preffered stock because preferred stock would reduce the liability to the corporation. The corporations investors would also being more willing to invest in preffered stock because there would be less risk for them, which would generate more investors....
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- Winter '08