Question

When a company has issues bonds, preferred stock, and common stock to investors what investor gets paid last

Answer 1

When a company has issues bonds, preferred stock, and common stock to investors what investor gets paid last is explained in the following

Explanation:

• In a buyout, the purchaser is buying all of the common shares of stock for a price it believes to be the fair value of the company as a whole. ... Many preferred shares carry convertibility options, where they can trigger a conversion from preferred into common stock.
• Preferred stock is a type of ownership that receives greater demand on a company's profits and assets than common stock. While preferred shareholders do not typically have a right to vote in the company, they do hold the benefit of being paid dividends before common shareholders.
• Most shareholders are attracted to preferred stock because it offers consistent dividend payments without the long maturity dates of bonds or the market fluctuation of common stocks.
• The main difference between preferred and common stock is that preferred stock gives no voting rights to shareholders while common stock does. Preferred shareholders have priority over a company's income, meaning they are paid dividends before common shareholders.
• Preferred stocks are not debt issues, so they do not represent loans that are eventually paid back at maturity. ... The yield generated by a preferred stock's dividend payments becomes more attractive as interest rates fall, which causes investors to demand more of the stock and bid up its market value.