In the event of bankruptcy and liquidation by a firm,all preferred shareholders receive any claims before common shareholders but after both secured and unsecured creditors.

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Preferred shareholders have a higher priority in the claim of assets in case of bankruptcy and liquidation compared to common shareholders, but they have lower priority compared to both secured and unsecured creditors. Therefore, they receive payment after the creditors are paid but before the common shareholders receive any payment.

In the Event of Bankruptcy and Liquidation by a Firm,all