Free & interactive
The Capital Stack Cheat Sheet
Payout order when a company fails, top gets paid first. Tap what you own to find your seat.
Interactive map
The Capital Stack Cheat Sheet
@fmaunlv
Payout order when a company fails, top gets paid first. Tap what you own to find your seat.
PAID 1ST
Senior debt
The bank's secured loan. First money out in a failure.
PAID 2ND
Junior / mezzanine debt
Higher rate, still ahead of every owner.
PAID 3RD
Preferred equity
Early investors with a liquidation preference.
PAID LAST
Common stock (you)
Paid only if everyone above is made whole. Often nothing.
What do you actually own? Tap it:
e.g.Spirit Airlines, live example: lessors first, then bondholders, then creditors. Equity shareholders were wiped out completely.
Quick check. A company goes bankrupt. Who gets paid first?
Don't ask how much you can make.Ask where you sit if it goes wrong.
Risk is not knowing what you own.
Saw this on our Instagram? Comment STACK on the post for this link. Follow @fmaunlv for a new finance guide every week.
More free guides
The Write-Off Reality CheckType the price. Watch what the write-off actually saves you, then run the three checks.5 Questions Before You InvestName the deal, run all five. The meter tells you when it's earned your money.The Lifestyle Freeze WorksheetTwo numbers in, your wealth engine out. Watch what freezing your lifestyle actually builds