Debenture
/dɪˈbɛn.tʃər/
Definitions
- (n.) A long-term security yielding a fixed rate of interest, issued by a company and secured against assets.
The corporation issued debentures to raise capital for expansion.
Forms
- debentures
Related terms
See also
Commentary
Debentures are unsecured or secured debt instruments typically used by companies to raise long-term funds; clarity on security status is important in drafting.
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