1. First of all, the preferred shares are issued by borrowing to raise funds, and the dividends are fixed. Enterprises should pay interest to preferred shareholders according to their profits, which increases the burden on enterprises and is not conducive to reinvesting their profits in production development;
2. Because the dividend of the preferred stock cannot be deducted from the income tax, it increases the financial burden of the company;
3. It is less attractive to market investors. Because preferred shares are non-refundable, non-tradable, and have no voting rights in business operations, the flexibility ratio is poor, and the limitations are relatively large compared with ordinary shares, so the market attraction is relatively small;
4. According to the characteristics of preferred shares, the profits of companies with very good profits will be greatly diluted, so companies with strong profitability are reluctant to issue preferred shares; However, the issue of preferred shares by companies with poor profitability is not attractive to investors;