Finance: What is Pari-Passu?

Pari-passu means "on equal footing." Cool. ...What does that mean? Hit play to find out.

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Transcript

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It's fair There is no preferential treatment of one side

00:29

over the other will in a bankruptcy creditors are generally

00:33

on equal footing like vendors of miles of thin whoopee

00:37

cushion rubber are treated pari pasu with vendors of that

00:41

powder stuff that makes the rubber not stick to itself

00:44

when it gets shift on a hot day right there

00:46

both vendors they're treated sorry sue each of them having

00:49

the same rights to get repaid the money that they're

00:52

owed No one creditor has a better crack at getting

00:56

his or her money back in a party pasu agreement

00:59

Well the opposite would be something like a preferred stock

01:02

compared with common stock in a bankruptcy or liquidation preferred

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stock it's treated meaningful e better than common That is

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the preferred stock it's paid back fully in its entirety

01:14

before the common gets a dime I eat not carry

01:18

Pasu Think that's unfair Well coin a phrase unfair e

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pasu or something like that And maybe you can be 00:01:25.653 --> [endTime] a legend just like mr