Which types of securities has the lowest priority in a bankruptcy proceeding?

Question

Natalee Long

Physics

4 December, 03:10

Which types of securities has the lowest priority in a bankruptcy proceeding?

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Answers (1)

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Landin Boone · Answer 1

Common stock

Explanation:

Common stock is also regarded to as shares in which dividends are paid to the holders according to how profitable the organization is.

Common stock is a type of equity security and it is also the least considered in the case of bankruptcy due to its variability and the probability of stockholders not getting anything because of the debtor being insolvent.