In the event of a corporate liquidation, preferred shareholders carry senior positions as claimants in bankruptcy over the common shareholders.

Name: In the event of a corporate liquidation, preferred shareholders carry senior positions as claimants in bankruptcy over the common shareholders.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

In a corporate liquidation, preferred shareholders have a higher claim on assets and earnings than common shareholders, meaning they get paid out before common shareholders in the event of bankruptcy.

In the Event of a Corporate Liquidation, Preferred Shareholders Carry