Corporations issue preferred shares in order to raise capital without sacrificing control of the corporation and to increase the return earned by common shareholders.

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Preferred shares offer certain advantages to corporations, such as the ability to raise capital without diluting the voting rights of existing shareholders. Additionally, preferred shareholders typically receive a fixed dividend payment that must be paid before any dividends can be paid to common shareholders, which can help attract investors and increase the return earned by common shareholders.

Corporations Issue Preferred Shares in Order to Raise Capital Without