Preferred shareholders are investors who own preferred shares, a type of equity security that typically provides a fixed dividend before any dividends are paid to common shareholders. These shares often come with a higher claim on assets in the event of liquidation, making them a safer investment compared to common stock. However, preferred shareholders usually do not have voting rights in the company. The dividends on preferred shares are generally fixed, which can make them an attractive option for income-seeking investors. While they may not appreciate in value as much as common shares, they offer a more stable return, appealing to those looking for less volatility in their investment portfolio.