Preference shareholders are called ______.

Question

KollegeApply · Accepted Answer

Preference shareholders are called owners of the company. Explanation: • Preference shareholders, like equity shareholders, are considered owners of the company because they invest capital and have a claim on the company’s assets and profits. • However, they have limited rights compared to equity shareholders: • They receive a fixed dividend. • They have no voting rights on ordinary matters, unless their rights are affected.

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