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A firm doesn't have sufficient funds to continue operating and files for bankruptcy. The order of security owner's claims will be settled in this order
A firm doesn't have sufficient funds to continue operating and files for bankruptcy. The order of security owner's claims will be settled in this order (most senior claim to junior claim):
A. | Mortgage bondholder, all preferred and common stockholders, debenture bondholder.
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B. | Common stockholder, preferred stockholder, bondholder | |
C. | Bondholder, preferred stockholder, common stockholder | |
D. | Debenture bondholder, mortgage bondholder, all preferred and common stockholders. |
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