A corporation originally was formed with only common stock outstanding. If a company suffers financial distress or

Question:

A originally was formed with only outstanding. If a company suffers financial distress or goes bankrupt, preferred stock holders receive full repayment of their investments before any amounts are paid to common stockholders. Would it be ethical for this to issue preferred stock?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...