Case

Case vs. Realty Securities Co.

People vs. Security Life Insurance Co.

Corporate bond
Tontine Insurance Policy

DEBT
Form

Corporate bond
Equity

Substance

Preferred stock
Debt

Regular cash
payments in the
form of interest

Legally guaranteed
return of amount
borrowed

DEBT

Higher priority in
liquidation

Stated maturity date

No voting rights

Dividends, regular
or irregular

EQUITY

Residual interest in
the assets

Lesser priority in
liquidation

No maturity date

Voting rights

Lien upon corporate assets, variable returns depending on residual profits of company
Contingent characteristics