In a liquidation of a firm due to bankruptcy, which of the following usually gets paid last?

Question

Quizplus · Accepted Answer

In a liquidation of a bankrupt firm, common stockholders are usually the last to be paid, as they have the lowest priority in the capital structure. Bondholders and preferred stockholders typically have higher priority and are paid before common stockholders. Employees' wages may also have higher priority and are often paid before stockholders.

In a Liquidation of a Firm Due to Bankruptcy, Which