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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use