If a company goes bankrupt, its preferred stockholders have a better chance of recovering their investment than do the common stockholders.

Question

Quizplus · Accepted Answer

Preferred stockholders typically have priority over common stockholders when it comes to recovering their investment in the event of a company's bankruptcy. They are usually the first in line to receive any remaining assets or funds after secured creditors have been paid off.

If a Company Goes Bankrupt, Its Preferred Stockholders Have a Better