Residual Claimant

Definition:

The residual claimant is the agent who receives the remainder of a random amount once predictable payments are made.

The most common example: consider a firm with revenues, suppliers, and holders of bonds it has issued, and stockholders. The suppliers receive the predictable amount they are owed. The bondholders receive a predictable payout -- the debt, plus interest. The stockholders can claim the residual, that is, the amount left over.

It may be a negative amount, but it may be large. The same idea of a residual claimant can be applied in analyzing other contracts.

(Econterms)

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Econterms. "Residual Claimant." ThoughtCo, Jun. 23, 2014, thoughtco.com/residual-claimant-definition-1147134. Econterms. (2014, June 23). Residual Claimant. Retrieved from https://www.thoughtco.com/residual-claimant-definition-1147134 Econterms. "Residual Claimant." ThoughtCo. https://www.thoughtco.com/residual-claimant-definition-1147134 (accessed February 24, 2018).