ABSOLUTE PRIORITY
It is a rule that says the order of payment when a company liquidates its asset—creditors first before the shareholders. This rule is commonly used in bankruptcy to decide how much each participant will receive. As a rule, creditors will be the first priority then what’s left will be divided by the part-owners or the shareholders.
When it comes to the assets of a deceased person, the absolute priority rule states that creditors will be paid first before the distribution to the rightful beneficiaries.
It is another term for liquidation preference.
POPULAR TERMS
Premium Put Convertible
A convertible bond that has an additional put feature that allows it to be redeemed at a premium sometime during its life. As with a put option, th ...
Lancaster University Management School - LUMS
Lancaster University’s international business school, which was founded in 1964. Situated in Lancaster England, the business school is consid ...
Decoupling
The occurrence of returns on asset classes diverging from their expected or normal pattern of correlation. Decoupling takes place when two differen ...
Right Of Redemption
It is the right of a mortgagor or borrower who owns a real estate to retrieve his or her property. It gives them the ability to prevent foreclosure ...
Revenue Deficit
It occurs when the net amount received by the company is less than the projected net amount.
POPULAR ARTICLE
SEE FOREX TUTORIAL
A Guide to Income Tax: Overlooked Credits and Cuts
The US tax code changes from time to time, and majority of taxpayers cannot name at least three of the most common deductible expenditures. On that ...
A Guide to Your Personal Income Tax: Common Filing Mistakes
Failure to file the return on time is the most common mistake committed by taxpayers. Here are some of the other mistakes, which can cost you a lot ...
What is the Standard Moving Cost?
You concluded remodeling is expensive upon considering all important factors. So you decided to move to another house instead. But, is moving less ...
Student Loans: Consolidating Private Loans
Fixed interest rates.
That is one viable reason for consolidating private loans although you are not mulling over that option. Private lo ...
Digesting Financial Statements: System
A financial statement serves as an avenue for assimilating the overall health of a business. Let’s illustrate the four key steps in a cash-ba ...
ECONOMIC CALENDAR
Time | Country | Indices | Period |
---|---|---|---|
01:50 | Capital Spending | 4 quarter | |
02:00 | MI Inflation Gauge | Feb | |
02:30 | ANZ Jobs Advertisements | Feb | |
02:30 | Company Operating Profits | 4 quarter | |
02:30 | PMI Manufacturing | Feb | |
03:45 | Markit Final Manufacturing PMI | Feb | |
07:30 | Commodity Prices | Feb | |
09:30 | Retail Sales | Jan | |
10:15 | PMI Manufacturing | Feb |