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
Lease Rate
The interest rate; payment made in a certain period indicated in the lease contract for renting an asset like a property or an automobile. The leas ...
Bandwagon Effect
A psychological phenomenon in which people do something mainly because others are doing it, regardless of their personal beliefs, which they may ov ...
Harvest Strategy
A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment wo ...
Discount House
A firm that buys, sells, discounts and/or negotiates bills of exchange or promissory notes. It is mainly operating in the U.K.
Economic Growth Rate
Gauge of economic growth from one period to another, expressed in percentage. The measure does not adjust for inflation, it is expressed in nominal ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Ethical Investing: Instruments for Ethical Investing
The investment instruments available to ethical investors are similar to those available to all other investors, including bonds, exchange-traded f ...
Buying a Home: Selecting a House Suitable for Your Needs
After choosing the best location of your new house, it is about time to decide on the home that you want. Basically, there are three types of homes ...
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 ...
An Introduction to Insurance
Most people in the world own insurance. Insurance take a lot of forms such as medical insurance, automobile insurance, and the most common of them ...
Retirement Planning: Creating a Nest Egg
Last time, we discuss the different income sources for building a retirement fund. We shall now tackle the ways to create a retirement nest egg.
ECONOMIC CALENDAR
Time | Country | Indices | Period |
---|---|---|---|
02:00 | MI Inflation Gauge | Jan | |
02:30 | Retail Sales | Dec | |
09:00 | Factory Orders | Dec | |
11:30 | Construction PMI | Jan | |
11:30 | Sentix Investor Confidence | Feb | |
12:00 | Retail Sales | Dec | |
17:00 | Ivey Purchasing Managers Index | Jan | |
21:00 | Loan Officer Survey | ||
01:30 | Average Cash Earnings | Dec |