Debenture
noun
It is a document that a company issues, promising to repay borrowed money at a fixed rate of interest at a specific time.
The company issued a debenture to raise funds for its new project.
Often appears as...
- issue a debenture
- debenture holder
Usage tips
Formal
Technical
noun
In law, it is a document that grants a debt security, backed by the company's credit rather than assets.
Failure to meet the terms of the debenture can result in the company going into receivership.
Often appears as...
- debenture terms
- debenture trust deed
Usage tips
Formal
Academic
noun
It is a document that a company issues, promising to repay borrowed money at a fixed rate of interest at a specific time.
The company issued a debenture to raise funds for its new project.
Often appears as...
- issue a debenture
- debenture holder
Usage tips
Formal
Technical
noun
In law, it is a document that grants a debt security, backed by the company's credit rather than assets.
Failure to meet the terms of the debenture can result in the company going into receivership.
Often appears as...
- debenture terms
- debenture trust deed
Usage tips
Formal
Academic
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.
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.
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.
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