Mezzanine capital


In a company's capital structure, mezzanine capital is senior to common shares but junior to secured debt or senior debt. Mezzanine capital refers to subordinated debt or preferred equity and is usually more expensive for the issuer than issuing senior debt.

Mezzanine debt
See: Mezzanine capital

Investing Essentials

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

Term of the Day

Acid test ratio

Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.

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