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Investments glossary

Pari-Passu


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Quotes of the day:

By recurrently changing the horizon, things can be perceived from another angle and the perspectives of life can be reoriented in a captivating way. If not, the squeaking wheel of our mind will suffer from lack of oil and our vision of the world gets rusted.

— Erik Pevernagie

Pari-passu is a Latin phrase meaning equal footing that describes situations where two or more assets, securities, creditors, or obligations are equally managed without preference. An example of pari-passu occurs during bankruptcy proceedings: When the court reaches a verdict, the court regards all creditors equally, and the trustee will repay them the same fractional amount as other creditors at the same time.

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