Some of the shareholders possess the preference share
There are various multinational companies active all around the world. Those can be investment banking firms, manufacturing firms with a lot of capital invested in their foundations, and having a great annual turnover. It is not necessary that the equity of the firm is only the investment of the owners and board of directors but there can be many owners of the company holding small or big fractions of the company’s equity called shares. It is a fact that the one holding more than half of the shares is the owner of the company and each shared holder gets dividends as the return of their investment.Some of the shareholders possess the preference share which guarantees the fixed dividend to the shareholder and is given priority over the other shareholders. Stocks are those shares in which th…
