In the case of liquidation, bondholders are paid first, followed by preferred stockholders, followed by common stockholders.

Name: In the case of liquidation, bondholders are paid first, followed by preferred stockholders, followed by common stockholders.
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Bondholders are paid first in the case of liquidation as they have a higher priority in the capital structure. Preferred stockholders come next, followed by common stockholders who have the lowest priority in the event of liquidation.

In the Case of Liquidation, Bondholders Are Paid First, Followed