Which of these is in the correct order of priority for a corporate liquidation?

In a corporate liquidation, the order of priority for claims on assets reflects the structure of debt and equity. Secured bonds, as the name suggests, have collateral backing them, which means they are paid first because they have the least risk associated with them. Following secured bonds are debentures, which are unsecured bonds but have a higher claim than equity holders. Subordinated debentures come next; they have a lower priority claim than regular debentures, meaning they will only be paid after other higher-ranking debt has been satisfied. Lastly, common stockholders are at the bottom of the priority list. They are only paid after all debts and obligations have been fulfilled, making their investment the riskiest.

This hierarchy ensures that those who have lent money or made investments with less risk are compensated before those whose investments are at risk. The correct order reflects the proper legal structure of claims in a liquidation scenario, demonstrating a clear understanding of the risk associated with each type of security.