I mentioned this in the previous post about investing. But in this post we will go into a little bit more details.
So let me say this again. If that company at any point enters bankruptcy their preferred stockholders are entitled to be paid from the company left over assets before common stockholders.
The entire order in which these security-holders will receive their share of the assets will for the most part depend on the specific rights given to them in their security agreements.
Politics, Books and Me 
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