The Residual Claim Entitles a Common Stockholder to a Proportionate

question 132

Short Answer

The residual claim entitles a common stockholder to a proportionate share of a liquidating payout before preferred stockholders are paid.

---

Definitions:

Hyperlink

An element in an electronic document that links to another place in the same document or to an entirely different document or website.

HTML Code

The code used to structure and display web pages and their content. HTML stands for HyperText Markup Language.

Absolute Reference

In spreadsheet applications, an absolute reference is a cell reference that remains constant even if the formula containing it is moved or copied to another cell.

Relative Reference

In spreadsheet applications, it is a cell address that changes when the formula containing it is copied to another cell or location.