Company Debentures
A debenture is a type of debt instrument that companies issue to raise funds. In exchange for the loan, the company agrees to pay a fixed interest rate to the debenture holder over a specified period. Debentures can refer to both bonds, which are tradable securities, or the formal document representing a medium to long-term loan. They are typically unsecured, meaning they are not backed by collateral. Debenture holders are considered creditors of the company and have a priority claim on assets in case of liquidation, though they usually rank below secured creditors.
Related Terms
Consumer Price Index
The Consumer Price Index (CPI) measures the change in the cost of a basket of...
Abc Wave Theory
The ABC Wave Theory, also known as Elliott Wave Theory, is a method used to...
Accumulation/Distribution Indicator (A/D)
The Accumulation/Distribution (A/D) Indicator is a technical analysis tool used to determine the trend of...
Direct Public Offerings
A Direct Public Offering (DPO) enables a company to sell shares directly to the public,...
Box Spread
A box spread is an options trading strategy combining a bull call spread and a...
Exit Load
Exit load is a fee charged by mutual funds when an investor redeems their units...
