SIE practice questionmediumCommon Stock
In the event of a corporate liquidation, which of the following holders is paid last?
- ACommon stockholders✓ Correct answer
- BSecured bondholders
- CPreferred stockholders
- DUnsecured creditors
Explanation
Why A — Common stockholders
Common stockholders have the lowest claim in liquidation, after creditors and preferred shareholders. Secured bondholders and unsecured creditors rank higher.
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