Assertion: liquidation preference | /r/CapableOf | entitle holders of preferred stock
Facets:
value: to receive distributions of proceeds
type: PURPOSE
Source sentences:
text: The liquidation preference entitles holders of preferred stock to receive distributions of proceeds from an exit transaction before holders of common stock and other series of preferred stock with a lower preference priority and, in certain cases, entitles preferred stock to participate with holders of common stock after payment of the initial preference amount.