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Shares of stock traded in a stock market. Equities represent the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid.

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If a struggling company issues preferred stock, won't its share price hit rock bottom

I was reading a few days ago that Deutsche Bank was planning to issue preferred stock in order to gather cash. The company is struggling and because it has many illiquid assets some fear bankruptcy. …
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