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Question:Loan stock and preferred shares are not popular as consideration for the equity shares of another company. Which of the following is not a reason for the unpopularity of loan stock or preferred shares?
A. The effect on control of the acquiring company.
B. The effect on the gearing level of the acquiring company.
C. The change in structure of the target shareholders' portfolios.
D. The securities potentially being less marketable than equity shares.