SIE Exam Question 504: Answer and Explanation

Question: 504

A company you own common stock in has just filed for bankruptcy. As a shareholder, you will have the right to receive:

• A. New common shares in the reorganized company.
• B. A percentage of your original investment.
• C. The par value of the common shares.
• D. Your proportional percentage of residual assets.

Correct Answer: D

Explanation:

D: As a common stock holder, you will have the right to receive your percentage of any residual assets.