Debenture: meaning, definitions and examples
๐ณ
debenture
[ dษชหbษnสงษr ]
financial instrument
A debenture is a type of debt instrument that is not secured by physical assets or collateral. Instead, it is backed solely by the creditworthiness and reputation of the issuer. Corporations typically issue debentures as a means to raise capital, often with fixed interest rates.
Synonyms
Examples of usage
- The company issued a debenture to finance its new project.
- Investors were attracted to the debenture due to its high yield.
- After reviewing the debenture terms, she decided to invest.
- He explained the risks associated with purchasing a debenture.
Translations
Translations of the word "debenture" in other languages:
๐ต๐น debรชnture
๐ฎ๐ณ เคฌเฅเคเคก
๐ฉ๐ช Debenture
๐ฎ๐ฉ obligasi
๐บ๐ฆ ะดะตะฑะตะฝัััะฐ
๐ต๐ฑ dลugopis
๐ฏ๐ต ใใใณใใฃใผ
๐ซ๐ท obligation
๐ช๐ธ debenture
๐น๐ท tahvil
๐ฐ๐ท ์ฑ๊ถ
๐ธ๐ฆ ุณูุฏ ุฏูู
๐จ๐ฟ dluhopis
๐ธ๐ฐ dlhopis
๐จ๐ณ ๅบๅธ
๐ธ๐ฎ obligacija
๐ฎ๐ธ skuldabrรฉf
๐ฐ๐ฟ ะพะฑะปะธะณะฐัะธั
๐ฌ๐ช แแแแแแแ
๐ฆ๐ฟ borc
๐ฒ๐ฝ bono
Etymology
The word 'debenture' has its roots in the early 17th century, derived from the Latin word 'debentur', meaning 'they are owed'. Originally, it referred to a legal document acknowledging a debt. The modern financial use of the term emerged as businesses and governments began to issue formal debt instruments to attract investors. By the 19th century, debentures became a common way for public companies to raise funds, often emphasizing their unsecured nature compared to traditional secured loans. Over time, the legal and financial frameworks around debentures have evolved, making them a staple in corporate finance and investment strategies.