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?
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- Two '19
