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
Commodity Futures Trading Commission - CFTC
Independent federal agency in the United States regulating the commodity futures and options markets. A product of the Commodity Futures Trading Co ...
Accelerated Amortization
It is an extra payment that is made toward a mortgage principal. By using accelerated amortization, the loan borrower can pay additional payment to ...
SFC
Securities And Futures Commission (SFC) is a regulatory body created by the Securities and Futures Commission (SFCO) for Hong Kong that regulates a ...
Raider
A raider is a person that attempts to take over a company through making a hostile takeover bid. Raiders target companies with undervalued assets a ...
Net Sales
It refers to the gross revenues minus returns and discounts of a company. It is the amount presented in an income statement under sales revenue.
POPULAR ARTICLE
SEE FOREX TUTORIAL
A Guide to Your Personal Income Tax: Essentials
In the United States, the progressive tax system is one of the most important yet misunderstood concepts of tax planning. Whenever people are asked ...
Digesting Financial Statements: Working Capital
Analysts and investors look at the working capital and its trends to measure a company’s financial performance. This metric determines a busi ...
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 ...
Retirement Planning: The Significance of Retirement
Previously, we went through the overview of retirement. In this article, we will now explore its significance, before discussing how to map out a s ...
Options Transaction Via Day Trading
Given so many concepts and terminologies in the foreign exchange market, anyone outside the field of finance may have a hard time coping up. Howeve ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 07:00 | Leading Indicators | May | |
| 10:00 | Ifo Business Climate Index | Jul | |
| 10:00 | Ifo Current Assessment | Jul | |
| 10:00 | IFO - Expectations | Jul | |
| 10:00 | Private Sector Credit | Jun | |
| 10:00 | M3 Money Supply | Jun | |
| 12:00 | CBI retail sales volume balance | Jul | |
| 14:30 | Durable Goods Orders | Jun | |
| 01:01 | BRC Shop Price Index | Jul |
