Senior Security

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

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

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

jungle remember the debt stack? vendors to the

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

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

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

debentures then subordinated debenture like debentures below debentures and

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

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

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

subordinated debentures collect generally and then finally there's

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