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What is the difference between preferred stocks issued by a private company and a mature company?
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Fundamentals of Corporate Finance
Edition: 2nd
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Preferred stock issued by a private company generally does not carry a dividend but is often convertible to common equity if the firm is successful.  Alternately, if the firm does not do well, the preferred stock has a higher claim on the assets of the firm.  Preferred stock issued by a mature company generally carries a preferred dividend, seniority in liquidation, and special voting rights.
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