ShmoopTube

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Finance a la shmoop what are senior and junior debt? or like what's the

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difference between them well what are they they're debt in a bankruptcy senior

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debt collects what they're owed ahead of junior debt shockingly yep laws of the [Debt transferring to senior debt]

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jungle remember the debt stack? vendors to the

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company collect first then employees then the IRS of course because while

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they always have their hands up in your bidness [Woman flips over stack of papers on womans desk]

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then come senior bonds then come junior then come unsecured bonds also known as

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debentures then subordinated debenture like debentures below debentures and

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there are all kinds of granular things in the bonds above we're very sorry if

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one day in your career you have to care about all of this okay then moving down [Man discussing debt stack]

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the stack then there's preferred stock which collects after the most

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subordinated debentures collect generally and then finally there's

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common stock and well really finally then there's death and well in taxes [Uncle Sam appears at grave stone]

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