Subordinated debt

Definition:

Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debtholders receive payment only after senior debt claims are paid in full.

Investing Essentials


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

Term of the Day

Arizona Stock Exchange

A single price auction exchange for equity trading that allows anonymous buyers and sellers to trade at low transaction costs.

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


Create your free portfolio