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.

Mentioned in ?

seniority

References in periodicals archive ?

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

in sourcing and negotiating a junior security, remarked Lou Paone, managing director, Deloitte Corporate Finance LLC, and head of DCF s ESOP advisory practice.

United States : Deloitte Corporate Finance LLC Advises AirBorn, Inc. on its Financing with Goldman Sachs Specialty Lending Group

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

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.

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.

Conflict of evidence

Kmart contends this junior security interest in its inventory has significant value.

The Kmart trade lien program--is it what it is cracked up to be? (Business Law)

When children outgrow their junior security roles, Coleman hopes they will move into the walk-along program.

Image enhancement

A secured party with a junior security interest in accounts may collect checks in which another secured party has a prior security interest.