In the event of the liquidation of a corporation, treasury stock ordinarily has preference as to liabilities, while preferred stock has preference as to assets.

Question

Quizplus · Accepted Answer

In the event of liquidation of a corporation, preferred stock has preference as to both assets and liabilities, while the common stockholders will be the last ones to receive anything. Treasury stock does not have any preference in liquidation as it is simply the company's own stock that has been repurchased and is held by the company.

In the Event of the Liquidation of a Corporation, Treasury