Junior Securities
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Term
Main definition
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Securities (e.g., common stock or certain preferred stock) that have a lower preference or priority-in terms of liquidation preference, dividends, conversion and perhaps other rights as compared with other, more senior securities. Usually, but not always, the common stock is the most junior equity security. One or more series of preferred stock may be junior to other series of preferred stock, just as they may be senior or on a parity with other series.