Residual assets

Liquidation.

Residual assets are any assets left over in a liquidation, after all creditors have been paid.

The ordinary shareholders (common stock holders) are entitled to a proportionate share of the residual assets, if any.

However, there will often be no residual assets, especially in an insolvent liquidation.

See also

• Common stock
• Creditors
• Dividend
• Equity
• Insolvency
• Liquidation
• Ordinary shares
• Preference shares