1. (TRUE or FALSE?) If a company is liquidated, creditors are paid in a priority order according to the structure of the firm's financial contracts and prevailing bankruptcy law?

2. (TRUE or FALSE?) Many people really believe that market prices of public securities reflect all available information because it is widely accepted that insiders have information that is always reflected in the security prices immediately, and therefore the concept of strong-form market efficiency represents the real case rather than the ideal world.