Help & FAQs

Where are ZDP shares ranked in the event of a default by the issuer?

In the event of a corporate bankruptcy, bondholders take priority in terms of repayment. Once bondholders are paid, preferred shareholders are next in line. Those who own shares of common stock are last to be paid, and for this reason, common stock is generally considered to be the riskiest way to invest in a company, while bonds are considered the least risky. No matter how you choose to invest in a company, however, the potential for monetary loss can't be ruled out.

Submitted on 11th Jul 2018

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Selftrade does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.

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