Products & Their RisksQuestion 2 of 398
In a corporate liquidation, which of the following has the highest priority of claim on remaining assets?
a.Common stockholders
b.Preferred stockholders
c.Secured bondholders
d.Holders of warrants
Explanation
Debtholders are paid before equity, and secured (collateralized) bondholders rank ahead of unsecured creditors, preferred, and common. Preferred stock ranks above common but below all debt. Warrants are equity-linked and rank with or below common.
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