What happens if a business fails?

Click to rate this post!
[Total: 0 Your Rating: 0]

As with any investment, there is an inherent risk that the company in which you invest may fail. If that is the case, and there is a liquidation event, holders of Preferred Stock will have a liquidation preference over common stock holders of the company. However, in many cases, there are no assets left to distribute, and the entirety of the investment may be lost.

0

Join Our Newsletter

Register

Register

OR
By Registering, you agree that you've read and accepted our disclaimer, you're at least 18 years old, you consent to the terms presented on the disclaimer, and to receive notifications from us.