Debenture - Wikipedia In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond , loan stock or note
Debenture | Types, Purpose, Characteristics, Pros Cons A debenture is a financial instrument issued by a company that signifies its debt obligations to the holder It operates as a loan certificate divided into smaller denominations, allowing companies to secure funds while avoiding complete ownership dilution
What Is a Debenture, and How Does It Work? - SmartAsset Debentures are a specific type of bond that government entities or corporations can use to raise capital While all debentures are bonds, not all bonds are debentures The biggest difference between the two has to do with how they’re collateralized
What Is a Debenture? Key Features, Types, and How It Works Explore the essentials of debentures, including their features, types, issuance, and repayment options in this comprehensive guide Understanding debentures is essential for investors and companies seeking to raise capital
Debentures: Definition, Types, and Investment Potential - The Law to Know Debentures are debt instruments issued by corporations or governments to raise capital When an investor purchases a debenture, they essentially lend money to the issuer in exchange for regular interest payments and the eventual repayment of the principal amount upon maturity
Debenture - An Unsecured Bond That Can Be Convertible What is a Debenture? A debenture is a long-term debt instrument issued by corporations and governments to secure fresh funds or capital There is no collateral or physical assets required to back up the debt, as the overall creditworthiness and reputation of the issuer suffice
Debentures - Meaning, Types, Features, Accounting Examples - WallStreetMojo A debenture is essentially a long-term loan that a corporate or government raises from the public for capital requirements For example, a government raising funds to construct roads for the public Debenture holders are the creditors of the issuing company, unlike a shareholder who is the owner
What Are Debentures and How Are They Accounted For: A Clear Explanation Debentures are a type of debt security that is issued by corporations and governments to raise funds They are similar to bonds, but there are some key differences between the two Debentures are typically unsecured, meaning that they are not backed by any collateral, while bonds are often secured by assets or other forms of collateral
debenture | Wex | US Law | LII Legal Information Institute Debentures refer essentially to unsecured bonds within the United States Corporations and governments use debentures as long term funding options, usually for major expansions and projects in the case of corporations Debentures have set interest rates, payback periods, and regular interest payments as most other bonds do