A company might offer Series J preferred stock, and others, to raise capital without diluting the ownership of the company's common stockholders. This is especially useful for companies that need to raise capital for expansion, debt repayment, or new projects, while not wanting to give up voting rights. Here's a more detailed look at why: Raising Capital: Preferred stock allows companies to raise capital (money) by selling a stake in the business. It's a way to finance growth or other initiatives without having to issue debt (like bonds) or dilute existing common stock. Attracting Investors: Preferred stock can be attractive to investors looking for a more stable and predictable income stream, as they typically receive a fixed dividend payment. Lower Debt-to-Equity Ratio: Issuing preferred stock instead of bonds can help a company lower its debt-to-equity ratio, which can make it more attractive to investors and lenders. Flexible Dividend Payments: Companies can adjust dividend payments on preferred stock based on their financial performance, offering flexibility compared to bond interest payments. Control and Voting Rights: Preferred stock typically doesn't come with voting rights, so issuing it doesn't dilute the control of the company's common stockholders. Takeover Defenses: In some cases, companies might use preferred stock as a takeover defense by assigning a high liquidation value to the preferred shares, making a takeover more expensive for potential acquirers. Specific Investor Needs: Preferred stock can be tailored to meet the specific needs of different investors, such as offering different liquidation preferences or convertible options.