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: 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