During a bankruptcy,
preferred stockholders receive first shot at the company's asset liquidation.
Not exact matches
In the event of a company's liquidation, common
stockholders have lowest priority and
receive assets only after bondholders,
preferred stockholders, and other debt holders have been paid in full.
The strongest proposals
received to date include most of the following: (1) commercial or near commercial products; (2) revenue or near - revenue generating opportunity; (3) potential for sustainable operations without the need for equity financings; (4) sales and marketing support from a strong commercialization partner; (5) reduced remaining regulatory risk; (6) attractive growth potential; and (7) willingness to provide liquidity to Avigen
stockholders who need or
prefer cash.
A
preferred stock gets priority in
receiving dividends and precedence over common
stockholders (after bond holders and other creditors though) in the event of a liquidation of corporate assets (like in a bankruptcy).
Also,
preferred stockholders have a set dividend they
receive at the appointed dividend payment cycles.
Holders of all types of
preferred stock
receive priority over common
stockholders.
The holder of the
preferred share gets only the $ 10 dividend, but the common
stockholder will
receive the higher dividend.
If the company liquidates, however, common
stockholders receive assets only after bondholders,
preferred stockholders, and other debt holders have been paid in full.