Liquidation Preference
Liquidation preference gives specified investors priority in receiving proceeds before common shareholders in a sale, liquidation, or exit.
Preferred, Senior, and Hybrid Capital covers Liquidation Preference, Non-Participating Preference Share, Preference Share Capital, Senior Capital, and related corporate-finance topics for capital-structure, leverage, share-capital, reserve, and recapitalization analysis.
Preferred, Senior, and Hybrid Capital covers debt-equity mix, share capital, leverage, capitalization, reserves, preferred or hybrid capital, recapitalizations, payouts, and capital-maintenance concepts.
Use these pages when a financing choice changes leverage, dilution, legal capital, reserve capacity, creditor protection, shareholder payouts, or debt capacity. It sits inside Capital Structure, so readers can move up when the broader company-finance context matters.
Use the table below to choose the narrower corporate-finance branch before applying a term to a model, board memo, financing analysis, transaction review, or risk assessment. Move into the term page when the evidence source, calculation, agreement, filing, account, or governance right matters.
| Area | Use it for |
|---|---|
| Liquidation Preference | Liquidation preference gives specified investors priority in receiving proceeds before common shareholders in a sale, liquidation, or exit. |
| Non-Participating Preference Share | Preference share with a fixed dividend but no right to share in surplus profits beyond stated terms. |
| Preference Share Capital | Preference share capital is equity with priority dividend or liquidation rights compared with ordinary common shares. |
| Senior Capital | Senior capital has priority over junior capital in payment, liquidation, or claim ranking within a financing structure. |
| Senior Equity | Senior equity ranks ahead of junior equity for dividends, liquidation proceeds, or negotiated economic rights. |
| Senior Security | Senior security refers to a financial instrument or security that possesses a superior claim over junior obligations and equity on a corporation’s assets and earnings. |
| Trust Preferred Securities (TruPS) | Trust Preferred Securities (TruPS) are hybrid financial instruments issued predominantly by banking institutions. |
Capital-structure content is educational and does not provide investment, legal, tax, accounting, or financing advice.
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Liquidation preference gives specified investors priority in receiving proceeds before common shareholders in a sale, liquidation, or exit.
Preference share with a fixed dividend but no right to share in surplus profits beyond stated terms.
Preference share capital is equity with priority dividend or liquidation rights compared with ordinary common shares.
Senior capital has priority over junior capital in payment, liquidation, or claim ranking within a financing structure.
Senior equity ranks ahead of junior equity for dividends, liquidation proceeds, or negotiated economic rights.
Senior security refers to a financial instrument or security that possesses a superior claim over junior obligations and equity on a corporation's assets and earnings.
Trust Preferred Securities (TruPS) are hybrid financial instruments issued predominantly by banking institutions.