UK Accounting Glossary
A junior capital pool (JCP) is a type of corporate structure which allows a company to issue stock to the public without specifying how the funds will be used. The purpose of a junior capital pool is to provide an easy way for start-up companies to raise capital from the public. Under a junior capital pool corporate start-up plan, the principals of a company must invest a minimum of $100,000 into the company before the junior capital pool can offer shares to the public. The concept for the junior capital pool originated in Alberta, Canada, primarily due to widespread speculation regarding the area’s oil reserves, and, by its very nature, a junior capital pool corporation is considered a risky investment by most investors. The junior capital pool concept is only legal in the country of Canada.
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This glossary post was last updated: 9th February 2020.