Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- JUNIOR SECURITY
In the world of bonds, the term junior means having less claim to repayment. If you own a junior security, as such bonds are known, and the issuing company goes out of business, you have less claim on the company's assets than an investor who owns a senior security issued by the same company. But all bondholders, whether they own junior or senior securities, aresenior to, or have a greater claim than, holders of preferred stock, who in turn are senior to holders of common stock.Back