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Liquidation entitlement

What a shareholder receives on the liquidation of a company after all creditors have been settled with.

How to read the number

It fixes the shareholder's place in the queue: last, with preferred shares standing ahead of ordinary ones within that place.

When the metric lies

The residue is usually nil: liquidation tends to arrive where assets fell short of obligations, and the queue never reaches equity.

Also known as: residual claim on liquidation

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