Question

Suppose NanoSpeck, a biotechnology firm, is selling stocks to raise money for a new lab—a practice known as finance. Buying a share of NanoSpeck stock would give Jacques the firm. In the event that NanoSpeck runs into financial difficulty, will be paid first._________

Answer 1

Answer: Bond holders                                          

                 

Explanation: In simple words, bondholders refers to the creditors of the organisation. The holders of the bond are not the owners as they are paid fixed interest and are not able to participate in the decision making of the company.

In the event of liquidation, bondholders are paid first because it is assumed that the decision makers should be punished for the liquidation and hence they should be paid at last.