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Having read recently about "Good welling to blackberry for a fraction of what it was valued at and how screwed the employees were that had common stock, I'd be

• dpflan 11y ago
  It does showcase the preferential treatment and the motives of investors who have preferred stock. When they need to ensure a return they seem to have the leverage to do so. In this example though we see the battle emerging between large common stock owners against preferred stock owners. From that article on Good: "In October, Brian Bogosian, a former Good C.E.O. and a significant shareholder, along with two institutions that own common shares, said the board was not looking after the interests of common stockholders and sued in Delaware Chancery Court. They are seeking unspecified damages and fees." The double-edge sword (taxes and cost to take ownership in a company that will probably only payout from a long, expensive lawsuit, brought on mostly by wealthier owners of common stock...) is when employees exercise their options to obtain shares to then have ownership to contest payouts that obviously favor preferred stock.