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1.
When a business or firm is terminated or bankrupt, its assets are
sold and the proceeds pay creditors, any leftovers are distributed
to shareholders.
2. Or any transaction that offsets or closes out a long or short position.
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Creditors
liquidate assets to try and get as much of the money owed to them
as possible. They have first priority to whatever is sold off. After
creditors are paid, the shareholders get whatever is left with preferred
shareholders having preference over common shareholders. |
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Dictionary
