Junior security

Definition:

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.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Risk controlled arbitrage

A self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio