Close X

Liquidation Preference

Liquidation Preference

  • Term

    Main definition

  • Liquidation Preference

    A feature and provision of preferred stock. A liquidation preference is the right of a holder of the securities with the preference to receive, in priority to amounts distributed to other (common and junior) securities holders, a specific amount (called a preference) if the company is liquidated (or deemed to be liquidated) or if its stock is redeemed. The liquidation preference is usually fixed at the original investment amount, plus accrued and unpaid dividends, or may be fixed at a multiple of that amount See Liquidation, Multiple Liquidation Preference, and Participating Preferred Stock.

Contact us Today

The Nick Yocca Law Firm is committed to answering your questions about business law and corporate compliance matters in Orange County.

We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.