Preferred shares are a type of equity security that represents ownership in a company. Businesses can use preferred shares to raise capital by issuing them to investors in exchange for money. The investors become shareholders in the company and are entitled to fixed dividend payments and potential appreciation in the value of their shares. By issuing preferred shares, businesses can raise capital quickly without incurring debt or giving up control to outside investors. Preferred shares can be a useful tool for businesses to raise capital, but they also come with some limitations and risks. For example, fixed dividend payments may…
