When a corporation ceases operations, preferred and common stockholders usually get all their investment back from the sale of the assets.

Question

Quizplus · Accepted Answer

When a corporation ceases operations and liquidates, creditors and bondholders are paid first from the sale of assets. Preferred stockholders are next in line, and common stockholders are last, often receiving little to nothing back.

When a Corporation Ceases Operations, Preferred and Common Stockholders Usually