InvestorsHub Logo
Followers 20
Posts 1722
Boards Moderated 0
Alias Born 11/17/2009

Re: Slum Lord post# 397371

Friday, 03/17/2017 10:23:24 PM

Friday, March 17, 2017 10:23:24 PM

Post# of 803519
It's pretty simple. Liquidation preference. In a worst case situation of receivership, commons do not have a contractual liquidation preference, whereas preferreds do. During a restructuring, commons can be completely wiped. Preferreds can not. I'm not advocating whether commons will be, just stating the contractual facts.