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In response to the great financial crisis of 2007-2008, Congress passed a bill called the Troubled Asset Relief Program (TARP). As part of TARP, several

In response to the great financial crisis of 2007-2008, Congress passed a bill called the Troubled Asset Relief Program (TARP). As part of TARP, several large banks were forced to issue preferred stock that was purchased by the Treasury in exchange for new capital. Based on the differences between debt, equity, and preferred stock.


What are a couple of reasons that preferred stock was the best option for these three types of securities?

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