Abigail and Pamela both have stocks in the Rondante Group. However, if in the future the company goes out of business, Pamela will have a claim on the assets of the company before Abigail. Also, she is given higher priority when the company pays the dividends to all its stockholders. Unlike Abigail, Pamela is a .

Preferred Shareholders

Explanation:

The reason is that the preferred shareholders are paid before the ordinary shareholders. This is the reason why the risk associated with the preferred shareholders is lower than the risk associated with the ordinary shareholders who are paid at the end out of the profits if their are any profits left. The lenders are paid first, if there is any profit paid then a percentage of profit are paid as taxes, if still there are profits left then the preferred shareholders are paid and if still now there are profits left then the ordinary shareholders are paid. So this means that the preferred shareholders are paid before ordinary shareholders (That's the reason why the return on preferred shares are lower than the ordinary share because they are less risky).

i might look it up later.