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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Mentioned in ?

seniority

References in periodicals archive ?

Cyber Crucible allows one junior Security Operations Center analyst to operate at the effectiveness of 25 rare and expensive experts.

Cyber Crucible Welcomes Henry Peltokangas to the Board

Dmitry Galov, junior security researcher, Global Research and Analysis Team, Kaspersky Lab said, "Current vulnerabilities matter because the technology that exists today is the foundation for what will exist in the future.

Cyber-attackers can soon hack brains and manipulate memories, experts warn

(7) The intention of this restriction is to make sure that issuers do not undermine the incentive effect of skin in the game by selling off the risk without actually selling the junior security. For example, an issuer of CMBS might hedge the risk that real estate prices will drop by buying a credit default swap, in which the seller compensates the issuer when real estate prices fall.

Banking Trends: Skin in the Game in the CMBS Market: Issuers of commercial mortgage-backed securities must now retain a portion on their own books. What evidence is there that the rule will reduce risky lending?

While it remains unclear what prompted the latest allegations of resignation, multiple source claim relations between the defence minister and junior security officials have been strained by insubordination.

S. Sudan's defence minister "cancels" resignation: sources

brother of the governor and a junior security personnel, the source said,

Gunmen attack governor, miss target but kill his brother

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.

Leading by example: to motivate their teams, managers must have a positive attitude, a clear vision, good communication skills, and integrity

In other words, a default with respect to the first mortgagee's complaint does not result in default, forfeiture, or waiver of the junior security interest in the underlying property.

Disbursement of surplus proceeds from a foreclosure sale - the urban myth of the race to the courthouse

The debtor also granted a junior security interest in its assets to a creditor when it defaulted on its financing with its lender.

Defending a preference claim under the solvency defense: what the vendor must prove

One implication of this model is that the market will react negatively to the announcement of the issue of a junior security. The market realizes that a manager has a reservation level of undervaluation below which the manager will refuse to issue the junior security.

Junior-for-senior announcements a study of the role of inside ownership

The model is constructed such that the more junior security group takes on a larger value for the dependent variable.

An empirical study of the corporate choice among common stock, convertible bonds and straight debt: a cash flow interpretation

His experience with the world of security is limited to an 18-month stint as a junior security guard with the Israeli airline, El Al.