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Junior Stock |
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Junior Stock A stock that has a lower priority compared to another in the event of liquidation. That is, if a company goes bankrupt and is liquidated, holders of junior stock are only paid after all holders of senior stock are fully satisfied. For example, preferred shareholders must be paid before common shareholders; thus, common shares are junior stock with respect to preferred shares. See also: Absolute Priority Rule. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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