FINRA SIE quiz: Liquidation priority

Which of the following is the correct priority order for liquidation?

A. Unpaid wages and taxes, debentures, preferred stock
B. Unpaid wages and taxes, preferred stock, debentures
C. Debentures, preferred stock, unpaid wages and taxes
D. Preferred stock, unpaid wages and taxes, debentures

Answer: A. Unpaid wages and taxes, debentures, preferred stock

The priority order for a liquidation of a company is: unpaid wages and taxes, secured bonds, debentures, subordinated debentures, preferred stock, and common stock.

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