Debentures Meaning in English
word · lemma: debenture
Definition
Debentures are long-term loans or bonds issued by companies or governments to raise money, usually with a fixed interest rate and no specific asset as security.
Usage & Nuances
'Debentures' is formal and mainly used in finance and legal contexts. In the US, 'bond' is more common; 'debenture' often means an unsecured corporate bond. Typical phrases: 'issue debentures,' 'invest in debentures.' Don't confuse with 'shares' (ownership), as debentures represent debt.
Example Sentences
The company raised money by issuing debentures.
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Investors receive interest from their debentures every year.
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Debentures are different from shares.
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Many companies turn to debentures when banks refuse to give loans.
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Because debentures aren’t backed by assets, they usually offer a higher interest rate.
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If you’re new to investing, understanding debentures is a good place to start.
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