Why Do Investors in New Ventures Prefer to Take Preferred

question 26

Multiple Choice

Why do investors in new ventures prefer to take preferred stock in a venture instead of common stock?

• A) Because preferred shareholders get paid dividends before common shareholders
• B) Because preferred stock is much cheaper
• C) Because preferred stock is always worth double common stock
• D) Because preferred stock is easier to sell

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Definitions:

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Wild-Type Counterparts

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A vaccine made by inserting genes from a pathogen into a different organism, producing an antigen and stimulating an immune response.

Viral Surface Protein

Proteins located on the surface of viruses that play key roles in the virus's ability to infect host cells and evade the host's immune response.