debenture stock

Definition:

a marketable loan in the form of stock issued by a company which charges its property as security for payment of interest and repayment of principal. Normally a floating charge is given. If there is a significant fixed charge then the stock may be described as a ‘mortgage debenture’. Debenture stocks are often called simply ‘debentures’. It is possible to have an ‘unsecured debenture’ where the issuing company does not charge any property security for payment of interest and repayment of principal, but in practice such a marketable loan is usually called ‘unsecured loan stock’.



Contribute:

Add to or refine this definition | Discuss on our forum

Share: