Blank Check Preferred Stock A method companies use to simplify the process of creating new classes of preferred stock to raise additional funds from sophisticated investors without obtaining separate shareholder approval. Or, in a corporation's certificate of incorporation, it may authorize the issuance of preferred stock. If that authorization includes granting the board of directors the power to determine the rights, powers, and preferences of the preferred stock without further shareholder approval, it is known as blank check preferred stock.
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