Greenlight (an investment fund) wants to push Apple to issue preferred stock. Why? Because, among other things, preferred stock, compared to ordinary issued sha

Greenlight (an investment fund) wants to push Apple to issue preferred stock. Why? Because, among other things, preferred stock, compared to ordinary issued shares, will receive a perpetual dividend (very much like a bond), but with no maturity. Pros for the investor: if you are corporation/qualified investor, rather than paying 35% capital gains tax in the U.S. they will pay 15%. Preferred also tends to be senior to ordinary equity. Cons for the investor: they will probably have little or no voting rights as preferred equity holders. Little decision making at the shareholders' meeting. Additionally, given that preferred equity does not participate in the growth of the company, the preferred shares and dividends will most certainly remain/trade like a bond, with little volatility compared to traditional equities (if Apple's revenues/cash continue to grow like crazy, preferred equity investor will not have that much an upside). Cons for Apple: preferred dividends are not tax-deductible (unlike debt). In theory, Apple's cost of capital will increase. They will also issue an instrument with no redemption date. Pros for Apple: they might be able to avoid paying any repatriation on cash held internationally. Preferred equity is great for defending a company from hostile takeovers (but this is rare in Apple's case given its size).