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Re: Slum Lord post# 397371

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

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

Post# of 798353
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.