Absolute Priority Rule

Business, Legal & Accounting Glossary

Definition: Absolute Priority Rule


Absolute Priority Rule


Full Definition of Absolute Priority Rule


The idea that creditors’ claims take precedence over shareholders’ claims in the event of a liquidation or reorganization. Shareholders are compensated only after creditors have been fully paid off.


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https://payrollheaven.com/define/absolute-priority-rule/
Modern Language Association (MLA):
Absolute Priority Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 03, 2021 https://payrollheaven.com/define/absolute-priority-rule/.
Chicago Manual of Style (CMS):
Absolute Priority Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/absolute-priority-rule/ (accessed: December 03, 2021).
American Psychological Association (APA):
Absolute Priority Rule. PayrollHeaven.com. Retrieved December 03, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/absolute-priority-rule/

Definition Sources


Definitions for Absolute Priority Rule are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.