If a "liquidation preference" is provided,preferred stock usually has priority over common stock.

Name: If a "liquidation preference" is provided,preferred stock usually has priority over common stock.
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Quizplus · Accepted Answer

If a "liquidation preference" is provided, preferred stock usually has priority over common stock. This means that in the event of liquidation or bankruptcy of the company, preferred stockholders will be paid back their investment before common stockholders receive anything.

If a "Liquidation Preference" Is Provided,preferred Stock Usually Has Priority