debentures

(noun)

A debenture is a document that either creates a debt or acknowledges it, and it is a debt without collateral.

Related Terms

Examples of debentures in the following topics:

  • Conflicts of Interest Between Shareholders and Bondholders

    • If there is no profit, the shareholder does not receive a dividend, while interest is paid to debenture-holders regardless of whether or not a profit has been made.

  • Securities Exchange Act of 1934

    • The Securities Exchange Act of 1934 (also called the Exchange Act, '34 Act, or Act of '34) is a law governing the secondary trading of securities, including stocks, bonds, and debentures, in the United States of America.
    • One area subject to 34 Act regulation is the actual securities exchange -- the physical place where people purchase and sell securities (stocks, bonds, notes of debenture).

  • Sinking Funds

    • More specifically, it is a fund into which money can be deposited, so that over time preferred stock, debentures or stocks can be retired.

  • Reporting

  • Balance Sheet Analysis

    • Financial institutions (banks and other lending companies) use them to decide whether to grant a company with fresh working capital or extend debt securities (such as a long-term bank loan or debentures) to finance expansion and other significant expenditures.

  • The Valuation of Bonds

    • Debenture Bonds are unsecured bonds.Thus, the corporation does not pledge assets for the bond issues.A corporation must be financially strong to issue these bonds because these bonds rely on the corporation's credit standing.