If a firm goes bankrupt, the bondholders will get paid back before the stockholders get any money.

Name: If a firm goes bankrupt, the bondholders will get paid back before the stockholders get any money.
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In a bankruptcy scenario, the bondholders have priority over the stockholders in terms of getting paid back their investments. This is because bonds are a form of debt and have a fixed contractual obligation to be repaid, whereas stocks represent ownership in the company and have no guaranteed return.

If a Firm Goes Bankrupt, the Bondholders Will Get Paid