Investor Glossary-junior securityInvestor Glossary-junior securityInvestor Glossary-junior securityInvestor Glossary-junior securityInsightful 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 Security

The HTML to link to this page
 

A junior security is a security that ranks below other securities in terms of its claim on a company's assets or income. In other words, "junior security" is a term used to rank securities' claim to repayment. If a company goes out of business, the assets and income are distributed according to securities' rankings, with a junior security coming after more senior securities. For example, a common stock is a junior security when compared to a preferred stock, and a preferred stock is a junior security when compared to a bond. Thus in the event of bankruptcy, bondholders are paid back before preferred shareholders. After preferred shareholders are paid back, holders of a junior security can claim any remaining assets.



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


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use