Lesson60 seconds
What is Liquidation Preference?
Who gets paid first - and how much - when the company is sold or shut down.
Step 1 of 9
Simple Definition
Liquidation preference gives certain investors the right to receive a specified payout from sale or liquidation proceeds before common shareholders receive anything.
Explanation level
Tap a persona to hear the same idea in a totally different voice.
Try “Like I'm 5™” for a picture-book version - not the grown-up wording above.
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