Which investor would get first claim on the assets of a company that is struggling financially?

Name: Which investor would get first claim on the assets of a company that is struggling financially?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Bond investors have first claim on a company's assets in the event of bankruptcy or default. This is because bonds represent debt that must be repaid before any distribution can be made to shareholders. Therefore, bondholders generally have priority over equity investors.

Which Investor Would Get First Claim on the Assets of a Company