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 A debenture is a type of bond that is not secured by any sort of collateral Governments and corporations can use debentures as a capital-raising tool in lieu of taking out traditional loans
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
What is a debenture? | BDC. ca A debenture is a type of long-term business debt not secured by any collateral It is a funding option for companies with solid finances that want to avoid issuing shares and diluting their equity
Debentures - Meaning, Types, Features, Accounting Examples 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 - An Unsecured Bond That Can Be Convertible 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: Definition, Pros, Cons Examples - BoyceWire Debentures are a type of debt instrument issued by corporations or governments to raise funds from investors They represent a long-term loan agreement between the issuer and the debenture holders Debentures pay a fixed or floating rate of interest over a specified period