If a corporation goes bankrupt, its assets are sold and the proceeds are split among the creditors. The owners of the company split any money left over after creditors have been paid. Who would be paid first: stockholders or bondholders?

Question

Mathematics

Raelynn Faulkner

25 August, 00:04

If a corporation goes bankrupt, its assets are sold and the proceeds are split among the creditors. The owners of the company split any money left over after creditors have been paid. Who would be paid first: stockholders or bondholders?

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Cristian Young · Answer 1

Investors who take the least amount of risk will be paid first. So creditors and bondholders will be paid before the stockholders.

so ur answer is : bondholders will be paid first