A common stockholder would receive corporate assets only after the claims of bondholders and preferred stockholders were satisfied.

Question

Quizplus · Accepted Answer

Bondholders and preferred stockholders have higher priority in receiving corporate assets in case of bankruptcy or liquidation. Common stockholders are considered as residual owners and receive any remaining assets after the claims of bondholders and preferred stockholders have been settled.

A Common Stockholder Would Receive Corporate Assets Only After the Claims