Preferred Creditor

Dictionary Says

Definition of 'Preferred Creditor'

An individual or organization that has priority in being paid the money it is owed if the debtor declares bankruptcy. Because bankrupt entities do not have enough money to fulfill all of their financial obligations, some investors that are owed money will get paid in part or not at all. A preferred creditor has a first claim to any funds that are available from the debtor.
Investopedia Says

Investopedia explains 'Preferred Creditor'

In bankruptcy cases, types of creditors that are preferred are defined by law and commonly include preferred bond holders and sometimes tax authorities. A preferred creditor can also be an economic development institution, such as the World Bank, that has priority in being repaid a loan it has made to a country in the event the country experiences a financial crisis.
Search results for

'Preferred Creditor'

  • Taking The Bite Out Of A Bear Market

    http://www.investopedia.com/articles/basics/09/balance-portfolio-bear-market.asp
    ... Buying preferred stock will allow you receive a consistent income during the bear
    markets ... An investor who purchases a bond becomes a creditor and will not be ...
  • What You Need To Know About Bankruptcy

    http://www.investopedia.com/articles/pf/07/bankruptcy.asp
    ... critically important because its non-payment will compel the creditor to lay ... This
    bankruptcy option is normally preferred by individuals who are interested in ...
  • Series 7 Study Guide - Debt Securities - Corporate Bonds ...

    http://www.investopedia.com/exam-guide/series-7/debt-securities/corporate-bonds.asp
    ... 3.6 Preferred Stock; 3.7 Other Equities; 3.8 Determining Gains and Losses; 3.9 Shares
    from Conversion; ... A bondholder is a creditor; a shareholder is an owner. ...
  • Series 6 Study Guide - Investment Securities - Corporate Bonds ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-securities/corporate-bonds.asp
    ... the same claim on the company's assets as any other general creditor. ... situation,
    mortgage bonds have priority over debentures, followed by preferred stock and ...
  • Alternate Methods Of Online Payment - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/Alternate-Methods-Of-Online-Payment.aspx
    ... is another method of sending money to a seller's or creditor's bank account ... of these
    currently alternate payment methods could soon become the preferred methods ...
  • Series 7 Study Guide - Risk and Tax Considerations - Introduction ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/default.asp
    ... the bond’s maturity and duration (the weighted average term to maturity of a
    bond’s cash flows, a common risk metric of how quickly the creditor will be ...
  • Series 7 Study Guide - Debt Securities - Introduction ...

    http://www.investopedia.com/exam-guide/series-7/debt-securities/default.asp
    ... 3.6 Preferred Stock; 3.7 Other Equities; 3.8 Determining Gains and Losses; 3.9 Shares
    from ... use is to provide income to the holder (investor, creditor), but also ...
  • Financial Statements: Working Capital | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements6.asp
    ... This is especially true from the lender's or creditor's perspective, where the main ...
    check the inventory costing method, and LIFO is generally preferred to FIFO ...

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