liquidation preference

Definitions (2)

1. In venture capital, the right to receive a specific value for the stock if the business is liquidated.
2. More generally, the order in which creditors are paid off if the business is liquidated.

Use this term in a sentence

You should try ad figure out a way to get your liquidation preference to work as quickly as you can.

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Generally taxes and wages are given a liquidation preference under federal law when a company is liquidated pursuant to Chapter 7 of the U.S. Bankruptcy Code.

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The trigger for a liquidation preference payment is typically liquidation of the company or a sale, sometimes a sale of all properties or a merger of companies.

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liquidation margin bondholder