### Question
How is the term junior equity interest defined?


### Answer
The term **junior equity interest** is defined in *26 U.S.C. § 2701* as the following:

> common stock or, in the case of a partnership, any partnership interest under which the rights as to income and capital are junior to the rights of all other classes of equity interests

#### Citation:
  - *26 U.S.C. § 2701*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 14-SPECIAL VALUATION RULES**

