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| | Preferred Stock |
 | | Some companies preferred may be in greater proportion to common than others, that is, one company may be capitalized at one million common and five hundred thousand preferred, while another company in the same industry may be capitalized at one million common and only two hundred and fifty thousand preferred. |
 | | After the preferred has received $7.00 per share, and the common has received $7.00 per share, any remaining amount to be declared must be divided pro rata per share for both common and preferred. |
 | | The investor in preferred stock usually purchases his stock, in preference to bonds, for any number of reasons, but namely, a higher yield, a preference over common, a voice in the management at times, possibly a participating dividend, and a possible conversion feature. |
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