- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 47. Fundamentals of Credit Analysis
- Subject 2. Seniority Ranking and Priority of Claims
CFA Practice Question
Which type of security ranks the highest with respect to priority of payment?
A. common stocks
B. preferred stocks
C. junior unsecured bonds
Explanation: Debt ranks ahead of all forms of equity with respect to priority of payment.
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