Answer :
Final answer:
Preferred stock is a type of stock that offers fixed dividends and a favored position in liquidation but lacks voting rights. Reasons a corporation might not issue preferred stock include control considerations and the obligation of fixed dividends.
Explanation:
Preferred stock is a type of stock that typically pays fixed dividends and holds a favored position over common stock in case of liquidation, but it doesn't involve voting rights in the corporation.
One reason a corporation may not issue preferred stock is control; when a corporation issues preferred stock, it does not dilute the control of existing shareholders because preferred stockholders usually lack voting rights.
Another reason a corporation might not choose to issue preferred stock is the dividend obligation; while preferred stockholders are entitled to fixed dividends, this can become a financial obligation for the corporation that may not be desirable.
Learn more about corporate finance here:
https://brainly.com/question/34856994
