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.
References in periodicals archive ?
The survey of active retail investors found the percentage of investors who are using a Junior Stocks & Shares ISA has risen to 20.7% from 12.5%, and the percentage of those investing through a Junior Cash ISA has also grown to 17.2% from 6.3%.
This allowance can either be put into just a Junior Cash ISA, or divided between a Junior Stocks and Shares ISA and a Junior Cash ISA, in whatever proportion most suits the circumstances.
Natwest has 555,000 young savers with either a Young Savers account, which is designed for the under-11s to put away a regular monthly amount of PS10 or more, or a Junior Stocks and Shares ISA which is made for long-term taxefficient savings.
Most of the smaller indices mirrored the FTSE-100 Index's rise despite a number of staggering falls in share prices among some of the market's junior stocks.