Preferred stockholders are often referred to as residual claimants.

Name: Preferred stockholders are often referred to as residual claimants.
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Preferred stockholders have a higher priority claim on a company's assets and earnings compared to common stockholders. Common stockholders are considered residual claimants because they are the last in line to receive payments after all other obligations are met.

Preferred Stockholders Are Often Referred to as Residual Claimants