ShmoopTube

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Finance a la shmoop what is a residual claim to assets? alright people here's an

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investment and here's an investment gone bad well here's the result and you have [Cash burning]

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a claim to the crumbs of dollar bills here the investment in hair for days.com

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didn't go so well instead of regrowing hair as it promised

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it actually made hair disappear in you know other places so the investors eight

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million bucks is mostly gone Microsoft is buying the company for a

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scrap price of five million since you were the preferred stock investor and

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there was no debt junior or senior or otherwise no IRS bills owed no vendor

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bills owed just the preferred IEU well you have this residual claim to the you know

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financial residue and the eight million bucks you invested went to Jenny Craig [Man with briefcase of 8 million dollars appears]

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dieted down to only five million bucks which now come your way via your

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residual claim to assets fingers crossed your next investment goes a bit better

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but hopefully this one will put a little hair on your chest it happens [Man with hairy chest appears]

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