Preferred stockholders' claims to a corporation's assets take precedence over the claims of some creditors.

Name: Preferred stockholders' claims to a corporation's assets take precedence over the claims of some creditors.
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Preferred stock often has a liquidation value.In case of bankruptcy,preferred stockholders must be paid the liquidation value before any assets are distributed to common stockholders.However,preferred stockholder claims still fall behind creditor claims.

Preferred Stockholders' Claims to a Corporation's Assets Take Precedence Over