What Are Two Differences Between Corporate and Personal Bankruptcy

question 21

Essay

What are two differences between corporate and personal bankruptcy?

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Definitions:

Bondholders

Investors who own bonds issued by corporations or governments, entitled to receive interest payments and the principal amount upon maturity.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment in the future with possible interest.

Money Market Instruments

Short-term debt securities issued by financial institutions, companies, and governments.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.