2: We have had several discussions that alluded to concerns about "dilution" effects for a company. What do we mean by dilution (be as specific as possible) and mention, if appropriate, what might be impacted by dilution effects. Question 3: Why might preferred stock be a good financing source for a company in an early stage financing? What are the advantages and disadvantages (for the company owners and for the company investors) when considering this type of financing for the early stage company