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Shareholders
come last!
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Meaning
shareholders have only residual claim on
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assets: All
other claims must be paid before
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shareholders can
receive any distribution because
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other claims,
such as bond interest payments, are
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fixed.
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So
what’s good about being a shareholder?
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If
company earning is good and this residual is
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large,
shareholders benefit considerably
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Poor
company earning can be damaging
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