User of financial information Stakeholders: all parties who have stake / interest / concern in an organisation. Shareholders are stockholders are used interchangeably. Bondholders and lenders are similar. Ordinary shareholders vs Preference shareholders: . Ordinary shareholders Preference shareholders They are owners of the business Effectively, they are lenders of the business Buy ordinary share issued by the company Buy preference share issued by the company Voting right No voting right Receive dividends as a share of the company's profitability More risk (payment of dividend is only made if the company can do so financially) Receive fixed dividend (effectively, interest payment) and therefore cannot share of the company's profitability Less risk (payment of dividend is conducted as required in the agreement and cannot be affected by the company's financial performance) Receive payment first when the company pays dividend or when the company goes bankrupt Receive payment last when the company pays dividend or when the company goes bankrupt BIZ201 Module 3 Topic 5 Dar (This is my personal notes for some information related to t| User of financial information Stakeholders: all parties who have stake / interest / con Shareholders are stockholders are used interchangeably Bondholders and lenders are similar. Ordinary shareholders vs Preference shareholders: User of financial information Stakeholders: all parties who have stake / interest / concern in an organisation. Shareholders are stockholders are used interchangeably. Bondholders and lenders are similar. Ordinary shareholders vs Preference shareholders: . Ordinary shareholders Preference shareholders They are owners of the business Effectively, they are lenders of the business Buy ordinary share issued by the company Buy preference share issued by the company Voting right No voting right Receive dividends as a share of the company's profitability More risk (payment of dividend is only made if the company can do so financially) Receive fixed dividend (effectively, interest payment) and therefore cannot share of the company's profitability Less risk (payment of dividend is conducted as required in the agreement and cannot be affected by the company's financial performance) Receive payment first when the company pays dividend or when the company goes bankrupt Receive payment last when the company pays dividend or when the company goes bankrupt BIZ201 Module 3 Topic 5 Dar (This is my personal notes for some information related to t| User of financial information Stakeholders: all parties who have stake / interest / con Shareholders are stockholders are used interchangeably Bondholders and lenders are similar. Ordinary shareholders vs Preference shareholders