Question

What is preference shareholders and equity shareholders?

Answer 1

Preference shareholders are those shareholders who have preferencial rights over the distribution of dividends and bonuses of the company and the equity shareholders are the real owner of the business who have right to vote and attend all the general meetings where as preference shareholders generally do not have a right to vote

Answer 2

Answer:

A shareholder, also referred to as a stockholder, is a person, company, or institution that owns at least one share of a company’s stock, which is known as equity. Because shareholders are essentially owners in a company, they reap the benefits of a business’ success. These rewards come in the form of increased stock valuations, or as financial profits distributed as dividends. Conversely, when a company loses money, the share price invariably drops, which can cause shareholders to lose money, or suffer declines in their portfolios’ values.

Explanation:

KEY TAKEAWAYS

♦ A shareholder, also referred to as a stockholder, is any person, company, or institution that owns at least one share of a company’s stock.

♦ As equity owners, shareholders are subject to capital gains (or losses) and/or dividend payments as residual claimants on a firm's profits.

♦ Shareholders also enjoy certain rights such as voting at shareholder meetings to approve things like board of directors members, dividend distributions, or mergers.