Junior security

Junior security

A security that has a lower-priority claim on a company's assets and income than a senior security. For example common stock is junior to preferred stock.

Junior Issue

A security 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 secured debt must be paid before the holders of unsecured debt. Holders of unsecured debt must be paid before preferred shareholders, and finally, preferred shareholders must be satisfied before common shareholders. In the forgoing, each security is a junior issue compared to the previous one. See also: Absolute Priority Rule.

junior security

A security having a subordinate claim to assets and income with respect to another class of security. For example, preferred stock is a junior security compared with a debenture, and a debenture is a junior security compared with a mortgage bond. In general, a junior security entails greater risk but offers higher potential yields than securities with greater seniority.

Junior security.

In the world of bonds, the term junior means having less claim to repayment.

If you own a junior security and the issuing company goes out of business, you have less claim on any assets than an investor who owns a senior security issued by the same company.

But all bondholders, whether they own junior or senior securities, are senior to, or have a greater claim than, holders of preferred stock, who in turn are senior to holders of common stock.

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References in periodicals archive ?
Not all walk-along program participants come from the junior security program.
When children outgrow their junior security roles, Coleman hopes they will move into the walk-along program.
As a result of the curtailment of debt service on the Trust's loan portfolio, a valuation assessment of the underlying real estate and the Trust's limited liquidity, which limits the Trust's ability to preserve its junior security interest, the Trust determined that it was appropriate to record a $35,000,000 loan loss reserve in the fourth quarter of 1992.
in sourcing and negotiating a junior security, remarked Lou Paone, managing director, Deloitte Corporate Finance LLC, and head of DCF s ESOP advisory practice.
in sourcing and negotiating a junior security," remarked Lou Paone, managing director, Deloitte Corporate Finance LLC, and head of DCF's ESOP advisory practice.
brother of the governor and a junior security personnel, the source said,
The bank foreclosed on the first deed of trust, thereby extinguishing DeBerard's junior security interest.
If a manager's vision is to have the best security department around, the best-trained guards, or a successful loss prevention program, everyone--from the most junior security guard to the CEO--should know that this is the goal.
Under the first phase of the financing, which was consummated with the execution of the Agreement, (i) the company's Canadian subsidiary borrowed $900,000 under a 12% secured subordinated promissory note maturing in February 2008, (ii) the company issued to the investor a warrant to purchase 1,200,000 shares of Delphax common stock, and (iii) the company amended the terms of $3 million of four-year convertible subordinated notes, which the company issued in February 2004, to grant a junior security interest to secure those notes and increase their interest rate to 12% per annum.

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