debenture

/di'bentʃə/

Thân thiện

A company issues a debenture to raise capital for a new factory.

Definition

1. Noun:
   • A type of long-term debt instrument: A debenture is a formal certificate or bond issued by a company or government that acknowledges a debt. It represents money borrowed that must be repaid at a fixed future date, typically with periodic interest payments. Debentures are often not secured by physical assets or collateral.
   • A voucher acknowledging a debt: In a broader, sometimes historical sense, a debenture can be any certificate or voucher that serves as evidence of a debt owed.

Examples of Usage

• Noun:
  • The company raised capital by issuing debentures to investors.
  • Holders of the 5% debenture will receive their interest payment next month.
  • The debenture states the terms of the loan, including the maturity date and interest rate.

Advanced Usage

• "Unsecured debenture": A debenture that is not backed by any specific collateral or asset of the issuer. The holder's claim is based on the general creditworthiness and reputation of the issuer.

  • Because it was an unsecured debenture, the investment carried a higher risk.

• "Convertible debenture": A type of debenture that can be converted into a specified number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the holder.

  • He opted for convertible debentures, hoping to benefit if the company's share price rose.

• "Debenture holder": An investor or entity that owns a debenture.

  • As a debenture holder, she is entitled to regular interest income.

Variants and Related Words

• Debenture stock (n): A type of debt security similar to a debenture, but it is usually issued as a single, large loan stock rather than individual bonds.
  • The debenture stock was traded on the London Stock Exchange.

Synonyms

• Bond: A fixed-income instrument representing a loan made by an investor to a borrower.
• IOU: An informal written acknowledgment of a debt (less formal than a debenture).
• Promissory note: A financial instrument containing a written promise by one party to pay another party a definite sum of money.

Related Phrases

• "To issue a debenture": The act of a company or government offering and selling debentures to raise funds.

  • The board voted to issue a debenture to finance the new factory.

• "Debenture trust deed": A legal document that outlines the terms and conditions between the debenture issuer and the trustees who represent the debenture holders.

  • The rights of investors are protected under the debenture trust deed.

Học thuật

Noun

1. a certificate or voucher acknowledging a debt
2. the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future

Từ đồng nghĩa

• unsecured bond
• debenture bond