When preferred shares are issued,this will always cause an increase in the future return to common shareholders.

Question

Quizplus · Accepted Answer

The issuance of preferred shares does not always guarantee an increase in future returns to common shareholders, as the priority of payments and dividends will be given to preferred shareholders before common shareholders. It depends on the terms and conditions of the preferred shares and the financial performance of the company.

When Preferred Shares Are Issued,this Will Always Cause an Increase