This should be seen as an opportunity for the client and will certainly build

This should be seen as an opportunity for the client

This preview shows page 27 - 29 out of 33 pages.

ShareholdersA company belongs to its shareholders, who have spent money and bought the shares of the company. There is a direct relationship between their investments and the financial stability of the company. The better the company’s position, the more money they are paid.There are two types of shares: preference shares and equity shares. Both classes of shares are paid after the company has met its obligations such as paying creditors and providing for taxes, depreciation and amortization. Preference shareholders are paid a fixed rate of dividend before equity shareholders. Equity shareholders get to share the surplus profits.What are the relevant timeframes?
Image of page 27
Image of page 28
Image of page 29

You've reached the end of your free preview.

Want to read all 33 pages?

  • Two '19

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture