If a company goes bankrupt, how does the recovery

process typically differ between bondholders and eq

holders, and what impact does this have on their

respective investment risks?

Equity holders have first claim on assets, reducing their investhent

risk compared to bondholders.

Bo theondholders and equity holders have equal claim on assct

Sharing the investment risk equally.

Bondholders have first claim on assets; reducing theje!nvestment risk

compared to equity holders.