Balance Sheet
Liquidation Preference
The amount preferred shareholders are entitled to receive (per share) before common shareholders in a liquidation, dissolution, or similar event—often tied to par value plus any defined accruals (such as unpaid dividends, if applicable).
Why it matters
Liquidation preference is a core downside-protection feature of preferred equity. It defines seniority and helps investors compare risk across series (and vs. common stock) when collateral coverage deteriorates.
How we calculate or source it
Terms are specified by the issuer in the prospectus/certificate of designation (including whether dividends are cumulative, priority ranking vs other series, and what events trigger liquidation treatment).