The "liquidation preference" of preferred stock means that preferred shareholders have the right to be paid before common shareholders in the event of a corporation's dissolution and liquidation.

Question

Quizplus · Accepted Answer

The statement is correct. The "liquidation preference" of preferred stock means that preferred shareholders have the right to be paid before common shareholders in the event of a corporation's dissolution and liquidation.

The "Liquidation Preference" of Preferred Stock Means That Preferred Shareholders