In finance, seniority refers to the order of repayment in the event of a sale or bankruptcy of the issuer. Seniority can refer to either debt or preferred stock. Senior debt must be repaid before subordinated (or junior) debt is repaid.[1] Each security, either debt or equity, that a company issues has a specific seniority or ranking. Bonds that have the same seniority in a company's capital structure are described as being pari passu. Preferred stock is senior to common stock in a sale when preferred shareholders must receive back their preference, typically their original investment amount, before the common shareholders receive anything.
FpML
The seniority of bonds recognised in FpML (Financial products Markup Language) are as follows:
seniority, financial, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, seniority, financial, news, newspapers, books,. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Seniority financial news newspapers books scholar JSTOR December 2009 Learn how and when to remove this template message In finance seniority refers to the order of repayment in the event of a sale or bankruptcy of the issuer Seniority can refer to either debt or preferred stock Senior debt must be repaid before subordinated or junior debt is repaid 1 Each security either debt or equity that a company issues has a specific seniority or ranking Bonds that have the same seniority in a company s capital structure are described as being pari passu Preferred stock is senior to common stock in a sale when preferred shareholders must receive back their preference typically their original investment amount before the common shareholders receive anything FpML EditThe seniority of bonds recognised in FpML Financial products Markup Language are as follows FpML value DescriptionSenior Top precedenceSubTier3 Subordinate Tier 3SubUpperTier2 Subordinate Upper Tier 2SubLowerTier2 Subordinate Lower Tier 2SubTier1 Subordinate Tier 1See also EditSecurity interest Secured creditor Senior debt Unsecured creditor Preferential creditorReferences Edit The American Heritage Dictionary of Businessurt Publishing Company 2010 This finance related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Seniority financial amp oldid 1121225159, wikipedia, wiki, book, books, library,
