Preferred stock is often sold by companies:

Name: Preferred stock is often sold by companies:
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Question

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Companies often sell preferred stock as a way to balance their capital structures. This means that they want to have a mix of debt and equity securities in their portfolio to manage risk and ensure that they have enough funding to support their operations. By selling preferred stock, companies can raise capital without diluting the ownership of existing shareholders or taking on additional debt.

Preferred Stock Is Often Sold by Companies