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LSDefine

Simple English definitions for legal terms

liquidation preference

Read a random definition: occupational hazard

A quick definition of liquidation preference:

Liquidation preference: When a company is sold or goes bankrupt, some investors may have the right to get their money back before others. This is called liquidation preference. It means that certain investors get paid first, and others may not get anything at all. It's like if you and your friend both lent money to someone, but your friend gets their money back before you do.

A more thorough explanation:

Definition: Liquidation preference is a preferred shareholder's right to receive a specified distribution before common shareholders receive anything, once the corporation is liquidated.

Example: If a company goes bankrupt and is liquidated, preferred shareholders will receive their share of the assets before common shareholders receive anything. For example, if a company has $10 million in assets and preferred shareholders are entitled to a liquidation preference of $2 million, they will receive $2 million before any of the remaining $8 million is distributed to common shareholders.

This example illustrates how liquidation preference works in practice. Preferred shareholders have a higher priority in receiving their share of the assets compared to common shareholders.

liquidation dividend | liquidation price

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JumpySubsequentDolphin
23:31
tusbihun ‘ala khair
HELLO ALL
whos awake \
JumpySubsequentDolphin
23:42
hi SPLITTY!!!
HIII DOLPHYY
stanford finally sent me a status checker tomight
do yall know if "Your file has been submitted for review" just means under review
Dkk
0:08
@SplitterusClitterus: really depends on the school. Could mean they have just received it. Could be it is under review. Could mean they already have a decision for you. For Stanford, idk.
Mmm ok thank you
JumpySubsequentDolphin
1:19
my friend JUST sent me that omg
JumpySubsequentDolphin
1:19
also @renard that shows your IG handle
JumpySubsequentDolphin
1:20
I assume you don’t want to doxx yourself 😧
JumpySubsequentDolphin
1:20
if we send enough messages it will stop showing the message tho!!!!!!!!
JumpySubsequentDolphin
1:21
@renard99: come back and spam messages I only have so many left 😔
JumpySubsequentDolphin
1:23
. . .
Dkk
1:49
@renard99: you shared a post a good friend of mine had liked. Lmfao but respect +1
Dkk
1:49
I laughed at it too +1
1:50
Damn lol
1:50
Follow me brah
JumpySubsequentDolphin
2:01
I followed you
JumpySubsequentDolphin
2:01
don’t dox me ☹️
2:06
Nw I won’t dox you 😎
JumpySubsequentDolphin
2:07
don’t judge my feed either I’m bad at Instagram :/
3:17
has anyone here worked for a DAs office during the school year
3:43
LMFAOOO THE INSTAGRAM POST
m10
3:50
I have no idea how it shows his Insta handle. This makes me an old man.
Dkk
3:52
i think you all are just bullshitting
Dkk
3:54
Y'all are gay af.
Dkk
3:54
Making drama out of nothing like a buncha homosexuals.
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