Junior Equity

外汇网2021-06-19 14:14:33 166

Junior equity refers to equity that ranks lower than some other form of equity. It normally refers to the common stock in a company because it is subordinate to pferred stock. Common stock ranks behind pferred stock in its claim on company pidends because pidends on pferred stock must be paid before any pidends are paid to common stock.

In the event of a bankruptcy, the holders of junior equity have the lowest claim on the company's assets. Junior equity, such as common stock, is subordinate to pferred stock, while pferred stock is subordinate to holders of bonds.

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