Debentures

Debentures are long-term security instruments issued by corporations or governments, representing a loan made by an investor to the issuer. Debentures typically pay interest at a fixed rate and are redeemable at a specified future date. Unlike secured bonds, Debentures are usually not backed by collateral, making them riskier for investors.

Debentures meaning with examples

The company decided to issue Debentures in order to raise capital for expanding its operations, allowing them to finance new projects without diluting shareholders' equity.
Investors were drawn to the Debentures offered by the government due to their attractive interest rates and the safety they provided over traditional stock investments.
When the corporation's profits rose significantly, the board of directors considered redeeming the outstanding Debentures early, thereby saving on interest payments in the long run.
During the annual meeting, the CFO explained how the newly issued Debentures would improve the company's liquidity position, benefiting both existing shareholders and stakeholders.
Although Debentures are riskier than secured bonds, many investors regard them favorably due to the potential for higher returns and predictable income through fixed interest payments.

Debentures Synonyms

bonds commercial paper convertible bonds credit facilities debts equity securities financial instruments fixed-income securities fixed-interest securities futures instruments investments loans mortgages notes obligations promissory notes securities swaps unsecured bonds

Debentures Antonyms

assets capital common stock convertibles crowdfunding derivatives equity equity interests holdings ownership partials preferred stock property real estate rights shares stocks sweat equity venture capital warrants