when a company thrives junior equity is generally the best type of stock to hold over the long term 
unlike preferred stock owning common stock also gives shareholders voting rights meaning they can have a voice albeit a very quiet one in how the business is run special considerationsa counterpart to junior equity in the debt world is junior debt also known as subordinated debt it refers to bonds loans or other obligations issued with a lower priority for repayment than other more senior debt claims in the case of the issuer s default as a result junior debt tends to be riskier for investors and thus pays higher interest rates than more senior debt from the same issuer 