Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Economics, Finance, & Analytics
  • Investments, Trading, and Financial Markets

Junior Capital Pool - Explained

What is a Junior Capital Pool?

Written by Jason Gordon

Updated at April 17th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is a Junior Capital Pool?How Does a Junior Capital Pool Work?

What is a Junior Capital Pool?

A junior capital pool (JCP) is a corporate structure that allows a company to issue its shares or stock options to the public before going into an actual business. JCP also refers to a company that engages in such an act. When a company goes public (issues stock options) before having an operational business structure, a junior capital pool exists. JCP as a corporate practice is peculiar to Canada, it was first invented in Alberta, Canada and it only exists on Toronto's TSX Venture Exchange. The goal of a JCP is to provide a capital structure through which start-ups or emerging companies can easily raise funds for business operations.

Back to:INVESTMENTS & TRADING

How Does a Junior Capital Pool Work?

A junior capital pool (JCP) is a form of corporate financing that started in Canada, it was first invented in the oil and gas industry. It serves as a alternative way startups can raise money to go public. Undergoing a JCP requires that an emerging firm or a startup gets a minimum of $100,000 as investment from founders and then issues its shares to the public in order to gain additional funds to start its business operation. A junior capital pool has a structure that allows the founders of a company to fund it with a minimum of $100,000 before such a company is listed on the stock exchange (Canadain exchange). This corporate structure allows young startups that are yet to have a line of business operation to go public. JCPs have a lot of risks given that the companies have to means of income yet. The first JCP was invented in Alberta and was listed on the Alberta Stock Exchange. 

junior capital pool

Was this article helpful?

Yes
No

Related Articles

  • New York Stock Exchange - Explained
  • Callable Security - Explained
  • Accumulation Unit - Explained
  • Calendar Effect (Stock Market) - Explained



©2011-2021. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand