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: limit order, EBITDA, reverse mortgage, per diem, balance sheet, APR, option premium, cancelled check, required rate of return, debt service coverage, covered put, wholly-owned subsidiary, Key Rate Duration, dividends payable, liquidity ratio, deferred revenue, labor relations, quality assurance, diluted share, margin rate, 144a, inflation, ex-dividend, in escrow, risk management, retained earnings, deferred tax, FICO score, 401a, stock split, 1035 exchange, phantom income, command economy, FTSE, minority interest, irrevocable trust, VIX, stock market close, average price per share, Zero Cost Collar, open position, 1031 exchange, current ratio, ex-dividend date, implied volatility, annual return, real GDP, LIBOR, 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
©2004-2016 Investor Glossary - All rights reserved - Terms of Use