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A preferred stockholder is an investor who owns preferred shares, a type of equity that typically grants them priority over common stockholders in terms of dividend payments and asset liquidation. Preferred stockholders usually receive fixed dividends and have less voting power compared to common stockholders. In the event of a company's liquidation, they are paid before common stockholders, making their investment relatively safer, although they often forfeit potential capital appreciation.

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1w ago

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Related Questions

What kind of stockholder is paid a dividend first?

A preferred stockholder is paid first.


Which investor incurs the greatest risk?

preferred stockholder


What is the plural possessive for the word Stockholder?

The singular possessive form for stockholder is stockholder's.


Why do investors purchase preferred stock?

With preferred shares, investors are guaranteed a fixed or sometimes variable dividend forever. One of the main advantages to being a preferred stockholder is that, should the company face financial trouble and have to liquidate, you would be paid off before the common stockholders.


What is stockholder's equity?

Stockholder's equity is often the term used to refer to the value of a company. This is the amount that can be found on the business balance sheet when taking the assets of the company and subtracting the company's preferred stock, intangible assets, and other liabilities.


Does a common or a preferred stockholder have more say in how the company is operated?

Common stockholders participate more in the governance of a corporation than do preferred stockholders. This is accomplished by giving common stockholders the right to vote for members of the board of directors as well as on major decisions


Stockholder in financing?

what is the differentation between stockholder,stakeholder and shareholder?


When was Jessica Stockholder born?

Jessica Stockholder was born in 1959.


What has the author Jessica Stockholder written?

Jessica Stockholder has written: 'Jessica Stockholder: January 29-March 3, 1991' 'Jessica Stockholder' -- subject(s): Exhibitions, Assemblage (Art), Installations (Art)


Benefit of being a stockholder?

Risk of being a stockholder: Stockholders can lose their money if the company goes bankrupt. Benefit of being a stockholder: Stockholders share in the company's profits. Power of a stockholder: Stockholders can vote for the members of the board of director


What is a stockholder's share of a company's profit?

The stockholder's share of a company's profits are called dividends.


Why would someone want to be a stockholder?

The primary reason to buy the stock of a company and thus become a stockholder is to increase one's wealth. In other terms, the stockholder makes an investment that he or she believes will increase in value.