In the case of liquidation,bondholders are paid before preferred stockholders,who in turn are paid before common stockholders.

Question

Quizplus · Accepted Answer

This statement is true. In the event of liquidation, the bondholders have first priority to be paid back their principal, followed by preferred stockholders who are entitled to their dividend payments, and then common stockholders who receive anything that is left over, which may be nothing.

In the Case of Liquidation,bondholders Are Paid Before Preferred Stockholders,who