Bondholders have a "prior claim" over stockholders on a company's earnings or its assets.
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Q26: The sale of new stocks by a
Q27: Corporations can finance their activities through the
Q28: A bond and stock differ in that
Q29: The price of bonds is tied to
Q30: If a firm goes bankrupt and liquidates
Q32: Corporations must always pay dividends to their
Q33: "Common stock" is the type only sold
Q34: For a corporation, issuing bonds is riskier
Q35: If a firm goes bankrupt, the bondholders
Q36: Corporations often raise funds for business activities
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