In the case of liquidation,where do preferred shareholders rank?
A)before creditors and common shareholders
B)after creditors and common shareholders
C)after creditors and equally with common shareholders
D)before common shareholders and after creditors

Question

Quizplus · Accepted Answer

Preferred shareholders rank before common shareholders but after creditors in the event of a liquidation. This means they have a higher claim to assets than common shareholders, but creditors are paid first.

In the Case of Liquidation,where Do Preferred Shareholders Rank