ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Derivatives Videos 155 videos
What is speculation? Speculation refers to a high risk, high reward scenario in investing. When an investor engages in a speculation, they take on...
What is After Hours Trading/Extended Trading? After hours trading describes any trades made after the market closes or before the market opens. Bec...
What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...
Finance: What is a Residual Claim To Assets? 2 Views
Share It!
Description:
A residual claim to assets is a preferred stock investor's right to the financial remains of a company that's... gone the way of the dodo.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Banking
- Terms and Concepts / Bonds
- Terms and Concepts / Charts
- Terms and Concepts / Company Management
- Terms and Concepts / Derivatives
- Terms and Concepts / Incorporation
- Terms and Concepts / Real Estate
- Terms and Concepts / Regulations
- Terms and Concepts / Stocks
- Terms and Concepts / Trading
Transcript
- 00:00
Finance a la shmoop what is a residual claim to assets? alright people here's an
- 00:09
investment and here's an investment gone bad well here's the result and you have [Cash burning]
- 00:15
a claim to the crumbs of dollar bills here the investment in hair for days.com
- 00:21
didn't go so well instead of regrowing hair as it promised
- 00:26
it actually made hair disappear in you know other places so the investors eight
Full Transcript
- 00:32
million bucks is mostly gone Microsoft is buying the company for a
- 00:36
scrap price of five million since you were the preferred stock investor and
- 00:41
there was no debt junior or senior or otherwise no IRS bills owed no vendor
- 00:47
bills owed just the preferred IEU well you have this residual claim to the you know
- 00:54
financial residue and the eight million bucks you invested went to Jenny Craig [Man with briefcase of 8 million dollars appears]
- 00:59
dieted down to only five million bucks which now come your way via your
- 01:03
residual claim to assets fingers crossed your next investment goes a bit better
- 01:08
but hopefully this one will put a little hair on your chest it happens [Man with hairy chest appears]
Related Videos
GED Social Studies 1.1 Civics and Government
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...