Junior Debt

In a bankruptcy, senior debt collects what they’re owed ahead of junior debt. So junior debt is just debt. Just like any other debt. It's just not top priority regarding collection when things go...awry.

Yep. Laws of the jungle. Remember the debt stack. Vendors to the company collect first. Then employees. Then the IRS--of course, because they always have their hands in your bidness. Then come senior bonds. Then junior. Then unsecured bonds, a.k.a. debentures. Then subordinated debentures...and there are all kinds of granules in all of the above bonds. (We’re very sorry if one day in your career you have to care about that ladder.) Ok...then there’s preferred stock. Then common.

Then...death. And, uh...taxes.