| Absolute Priority | |
 The principle in bankruptcy proceedings that requires senior creditors to be fully paid before junior creditors and stockholders may receive any payment. Also known as liquidation preference. |
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 In other words, absolute priority specifies the pecking order. Senior creditors always get first grabs at the proceeds from liquidation. And, shareholders are the last people to get paid if a company goes under. |
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 An Overview Of Corporate Bankruptcy - As soon as you invest in a company, you face this risk. Find out what it means. Do Your Investments Have Short-Term Health? - Read up on some ratios that test whether a company is strong enough to survive tough times. |
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