what is a junior security 
the term junior security refers to a security with a lower priority than others put simply junior security is subordinate to any other type of security this means that junior security holders get paid only after those who own senior securities if and when a company goes bankrupt or is liquidated as such there s a very good chance that some or even all of the junior securities to which a company owes money may not be repaid after any leftover cash is distributed understanding junior securities