Preferred shareholders are individuals or entities that own preferred shares in a company. These shares give them a higher claim on assets and earnings than common shareholders. This means that if the company pays dividends, preferred shareholders receive their payments before common shareholders. However, preferred shares usually do not come with voting rights, which means preferred shareholders have less influence over company decisions. In the event of a company's liquidation, preferred shareholders are also prioritized over common shareholders when it comes to asset distribution. This makes preferred shares a safer investment option, as they provide more stability and predictable income, especially in times of financial uncertainty.