Junior Company

DEFINITION of 'Junior Company'

A small company that is currently developing or seeking to develop a natural resource deposit or field. A junior company will first conduct a resource study and either provide the results to shareholders or to the public at large to prove there is assets available and because developing natural resources is often a capital-intensive process. If the study provides positive results, the junior company will either raise capital or attempt to be bought out by a larger company.

BREAKING DOWN 'Junior Company'

Junior companies are most likely to be found in commodity exploration, such as oil, minerals and natural gas. To a certain extent a junior company is like a startup in that it is either looking for funding to help it grow, or is looking to for a much larger company to buy it out. The cost involved in starting a junior company is grown signficantly but so has the reward for being successful. Junior companies still remain interesting businesses for those who can afford it.

RELATED TERMS
  1. Junior Issue

    A corporate security that ranks lower in claim to another corporate ...
  2. Junior Debt

    Junior debt is debt that is either unsecured or has a lower priority ...
  3. Junior Capital Pool - JCP

    A corporate structure whereby companies can issue shares to the ...
  4. Junior Equity

    Junior equity refers to equity that ranks lower than some other ...
  5. Junior Accountant

    An entry-level position in an accounting department. A college ...
  6. Natural Capital

    A reference to the stock of natural resources, such as water ...
Related Articles
  1. Managing Wealth

    Choosing Between Major and Junior Mining Stocks

    In this article, we'll compare the juniors and the majors and look at what each can add to your portfolio.
  2. Markets

    Strike Gold With Junior Mining

    Learn what to watch out for to ensure your "sure thing" isn't another Bre-X.
  3. Markets

    A Beginner's Guide To Mining Stocks

    Here's a look at mining stocks and what they can bring to your portfolio.
  4. Financial Advisor

    How Advisors Can Help Junior Partners Flourish

    Hiring a junior partner can be beneficial to a financial planning practice. Here's how advisors can help a new hire flourish.
  5. ETFs & Mutual Funds

    Natural Resource Investing

    ETFs and futures are just some of the various investment options available to natural resource investors.
  6. Managing Wealth

    The Biggest Risks Mining Stocks Face

    In this article, we will look at risks shared by major and junior mining stocks and what they mean to investors.
  7. ETFs & Mutual Funds

    GDXJ: Market Vectors Junior Gold Miners ETF

    Obtain detailed information and analysis of the Market Vectors Junior Gold Miners ETF, and learn about the opportunities it affords investors.
  8. Trading

    Junior Gold Miners Ready to Shake Out Weak Hands (GDXJ, GDX)

    The junior gold miners fund has hit overbought levels that have triggered at least 6 major reversals since 2012.
  9. ETFs & Mutual Funds

    Wait for a Pullback to Buy Junior Gold

    The junior gold miners fund has booked strong first quarter returns but resistance in the lower 30s will likely end the rally.
  10. ETFs & Mutual Funds

    Mine For Profits With Natural Resource Sector Funds

    These funds allow everyday investors to get in on the action in this promising sector.
RELATED FAQS
  1. What criteria classify a company as a junior gold miner?

    Learn about junior gold miners, companies that exclusively mine for gold. These firms typically rely on venture capital and ... Read Answer >>
  2. What is the difference between investing and speculating?

  3. What types of positions might a Chartered Financial Analyst (CFA) hold?

  4. What other sectors are most similar to oil & gas drilling?

    Learn about sectors with companies that face similar challenges and rewards as the oil and gas drilling sectors. One example ... Read Answer >>
  5. How does horizontal integration allow companies to share resources?

    Learn how horizontal integrations allows companies to share resources. Understand specific examples of horizontal integrations ... Read Answer >>
  6. What exactly is a startup?

    A startup is a young company that is just beginning to develop. Startups are usually small and initially financed and operated ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center