Investor Glossary-junior equityInvestor Glossary-junior equityInvestor Glossary-junior equityInvestor Glossary-junior equityInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Junior Equity

The HTML to link to this page
 

Junior equity is equity that ranks lower than some other equity; more specifically, junior equity is called common stock. Junior equity is called "junior" for any of several purposes. Junior equity ranks behind preferred stock in its claim on company dividends; the latter are promised and guaranteed, while the former depend on either the profits of the company or a decision handed down from the company's board of directors. In the event of bankruptcy, the holders of junior equity have a lower claim on the company's assets (and are behind bondholders and other debtholders). The term does not apply to voting rights, however. Except in the case of a narrow class of preferred stock, junior equity has all voting rights.



Rate this junior equity definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: cancelled check, stock split, ex-dividend, class C shares, balance sheet, dividends payable, deferred tax, 401a, average price per share, stock market close, VIX, current ratio, open position, EBITDA, debt service coverage, irrevocable trust, risk management, required rate of return, retained earnings, inflation, covered put, FICO score, diluted share, APR, quality assurance, 144a, in escrow, wholly-owned subsidiary, ex-dividend date, reverse mortgage, labor relations, 1035 exchange, deferred revenue, Key Rate Duration, Zero Cost Collar, 1031 exchange, option premium, phantom income, LIBOR, command economy, limit order, FTSE, minority interest, margin rate, annual return, implied volatility, real GDP, liquidity ratio, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use