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If a publicly traded corporation were to declare bankruptcy, during the liquidation of the corporation, the creditors of the corporation and the owners of the
If a publicly traded corporation were to declare bankruptcy, during the liquidation of the corporation, the creditors of the corporation and the owners of the corporation would stand in line to receive money from the liquidation. The creditors have priority over the owners in the liquidation. An owner of common stock is said to have the most junior security issued by the corporation. In the liquidation process, who would be last in line to receive any money? A) Common stockholders O B) Secured bondholders OC) Preferred stockholders OD) Unsecured bondholders
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