Which type of investments typically have the least priority in liquidation?

In a liquidation scenario, the order of priority typically favors debt over equity. This is because debt investments, such as bonds or bank loans, are secured obligations that must be paid back to creditors before any proceeds can be distributed to shareholders. Equity investments, which represent ownership in a company, receive residual claims to assets only after all liabilities, including debts and obligations to creditors, have been settled. Consequently, in the event of liquidation, equity investors are at a disadvantage as they only receive funds after debt holders are fully paid. This is why equity investments have the least priority during liquidation processes. The other types of investments, such as real estate and short-term investments, may involve different risk factors and priorities, but they still rank higher than equity in terms of liquidation priority.