Junior Company

AAA

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.

INVESTOPEDIA EXPLAINS '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. Capital

    1) Financial assets or the financial value of assets, such as ...
  2. Startup Capital

    Startup capital refers to the money that is required to start ...
  3. Crude Oil

    A naturally occurring, unrefined petroleum product composed of ...
  4. Liquefied Natural Gas

    The liquefied state of natural gas, which is created by cooling ...
  5. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  6. Venture Capital

    Money provided by investors to startup firms and small businesses ...
Related Articles
  1. Active Trading

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.
  2. Mutual Funds & ETFs

    Investing In Oil And Gas UITs

    Unit investment trusts provide direct exposure to the energy sector, fueling better returns.
  3. Forex Education

    Natural Gas Industry: An Investment Guide

    Investors looking into this industry are faced with a confusing amount of information. We explain the important concepts and terms.
  4. Fundamental Analysis

    Accounting For Differences In Oil And Gas Accounting

    How a company accounts for its expenses affects how its net income and cash flow numbers are reported.
  5. Economics

    Strike Gold With Junior Mining

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

    The Best (And Worst) Countries To Be An Entrepeneur

    Where you start a business can influence its success. This new World Bank study will help you find the most – and least – favorable economic climates.
  7. Investing News

    Looking to Open a Franchise? These Topped The List In 2014

    These franchise businesses stood out in 2014.
  8. Not every new company or product makes it, but many successful startups share the following characteristics.
    Entrepreneurship

    6 Characteristics Of Successful Apps

    Not every new company or product makes it, but many successful startups share the following characteristics.
  9. When it comes to managing finances and tracking the markets on the go, there are a number of excellent apps that can be downloaded and installed onto your mobile device.
    Entrepreneurship

    Top Stock Market Apps For News Or Trading Or Both!

    When it comes to managing finances and tracking the markets on the go, there are a number of excellent apps that can be downloaded and installed onto your mobile device.
  10. A brief overview of the top apps that help forex traders with on time information, charts and more.
    Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center