In the case of insolvency,the claims of debt are honored prior to those of common stock and after those of preferred stock.

Name: In the case of insolvency,the claims of debt are honored prior to those of common stock and after those of preferred stock.
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In the case of insolvency, the claims of debt are honored before both preferred and common stock, with preferred stock claims being addressed before those of common stock.

In the Case of Insolvency,the Claims of Debt Are Honored