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A soup company found its canned nacho cheese sauce was too hot for Americans in the East and not hot enough for those in the West and the Southwest.As a result,the company's plants in Texas and California produce a hotter nacho cheese sauce than is produced in its other plants.The company is using segmentation to satisfy these different markets.
Preferred Shareholders
Investors who own preferred shares in a company, giving them priority over common shareholders in the distribution of dividends and assets in the event of liquidation, but typically without voting rights.
Dividends
Payments made by a corporation to its shareholder members, distributed from the company's profits.
Preemptive Right
A shareholder's right to maintain their proportional ownership in a company by purchasing additional shares before they are offered to the public.
Common Stock
A form of corporate equity ownership, a type of security representing an ownership stake in a corporation.
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