If a company files bankruptcy,preferred stockholders have priority over common stockholders and will be paid from the bankruptcy estate first if payments are to be made.

Name: If a company files bankruptcy,preferred stockholders have priority over common stockholders and will be paid from the bankruptcy estate first if payments are to be made.
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Preferred stockholders have seniority over common stockholders in the event of bankruptcy and will be paid first from the remaining assets of the company.

If a Company Files Bankruptcy,preferred Stockholders Have Priority Over Common