The term residual claim refers to a stockholders' right to

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Residual claim refers to the right of stockholders to share in the remaining assets of a company after all debts and other obligations have been settled. This right comes into play during liquidation, when a company is dissolved and its assets are sold off to repay creditors. Stockholders with a residual claim are entitled to a share of any remaining assets after creditors have been paid. The right to receive dividends, acquire additional shares, and exercise a proxy vote are separate from the residual claim.

The Term Residual Claim Refers to a Stockholders' Right to