### Question
What is the definition of senior stock?


### Answer
The definition of **senior stock** is as follows in *26 U.S.C. § 150*:

> stock—


(i) which participates pro rata and fully in the equity value of the corporation with all other common stock of the corporation but which has the right to payment of liquidation proceeds prior to payment of liquidation proceeds in respect of other common stock of the corporation

#### Citation:
  - *26 U.S.C. § 150*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS > Subpart C-Definitions and Special Rules**

