What are your own demands on capital?

The claims of their own capital are entitled to earnings shareholders, which are essentially profits, from the company, as soon as other debts of the company have been met. Also known as a residual claim, the entitlement to its own capital is usually relevant in the case of corporate bankruptcy or liquidation. Investors of stock investors receive the last priority to be compensated for debt holders and preferred investors of shares, all of whom are paid only after suppliers are returned for losses. This puts investors in a position for the most beneficial profits if the stock price appreciated. The reason is that shareholders of their own capital are rewarded from the evaluation of capital in the price of shares associated with other benefits, such as dividend payouts from undivided earnings. On the basis of regional debt and equity, they will receive the smallest amount of priority to their own capital. This means that if society closes its door and there is no financial restructuring, you areu all assets liquidated. The proceeds from the sale of assets are first of all suppliers, followed by the creditor, including debt holders.

The demands on their own capital are last honored. If revenues remain for shares, these shareholders are paid in accordance with the amount of the company they owned. In the worst case scenario, not only the stock profits are lost, but also the nominal value of the original investment is also deleted.

during bankruptcy reorganization, the consequences are less serious. The company management team is looking for a way to reduce debt load and intends to return the company to profitability. In this situation, the debt is reorganized under more manageable therms and there is no complete liquidation. The demands on their own capital have a better chance of fulfillment. Once the company emerges from bankruptcy, the company may decide to issue new shares under another symbol of trading as a way to separate it from a bankruptcyOta.

debt holders are entitled to ongoing interest payments on loans extended to the company, and if these payments are omitted, large bond holders are sometimes able to take control of the company. Once bond holders are paid, preferred shareholders and ordinary shareholders are able to file lawsuits on their own capital. If there are no income, the holders of their own capital get nothing.