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Why does conflict exist between stockholders and debtholders? Most bond covenants have been ruled to be invalid by the court system. Stockholders want to limit
Why does conflict exist between stockholders and debtholders? Most bond covenants have been ruled to be invalid by the court system. Stockholders want to limit additional risk, while debtholders welcome additional risk for more potential upside. Debtholders receive variable payments, while stockholders receive fixed payments. Debtholders want to limit additional risk, while stockholders welcome additional risk for more potential upside
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