5 Differences between ordinary shareholders and preference shareholders.

The following are differences between ordinary shareholders and preference shareholders;

  • Ordinary shareholders have voting rights while preference shareholders do not have voting rights
  • Ordinary shareholders do not have a fixed rate of dividends while preference shareholders have a fixed rate of dividends,
  • In case of liquidation preference shareholders receive their money before the ordinary shareholders.
  • Ordinary shareholders are the real owners of the company while preference shareholders are not the real owner of the the company.
  • Ordinary shareholders take the major decisions for the company while preference shareholders do not take major decisions for the company.

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