Debenture
/dɪˈbentʃər/
Definition 1 of 2
Pro Tip 1/3Company Promise
Understand that a debenture represents a commitment from the company to pay back the money.
Their debenture proclaims repayment with interest in five years.
Pro Tip 2/3Investor Trust
Investors buy debentures based on the trust in a company's ability to repay, not for immediate profit.
She invested in the company's debenture, trusting its steady growth.
Pro Tip 3/3Fixed Interest
Debentures typically offer a fixed interest, meaning investors know what to expect in returns.
The fixed interest on the debenture appealed to risk-averse investors.
Compare with
BondCertificateDebtLoanNoteObligationSecurity
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