Junior equity, also known as subordinated equity, refers to a type of stock that ranks below other classes of stock in terms of priority for receiving dividends and potential liquidation proceeds. There are several synonyms for junior equity, including second-tier equity, subordinate shares, and mezzanine equity. These terms all refer to the same concept of equity that holds a lower priority than other classes of stock. Junior equity is often used in leveraged buyouts and other financing arrangements that require multiple layers of capital structure. However, investors should be aware that junior equity carries a higher risk profile due to its subordinate status.