Preferred stock is often sold by companies:

Question

Quizplus · Accepted Answer

Preferred stock is often sold by companies as a way to raise capital without incurring contractual debt obligation. This is because preferred stock represents an ownership stake in the company, but does not come with the same legal obligations as debt. Additionally, preferred stock may be more attractive to certain investors who are seeking stable income streams, as the dividends paid on preferred stock are typically higher and more predictable than those paid on common stock.

Preferred Stock Is Often Sold by Companies