What does "debenture" mean?


According to Reference.com, a debenture is a certificate or document acknowledging a loan agreement or company's indebtedness without security or collateral provided to the debenture holder. The holder of the certificate receives a fixed rate of return.

Debentures are most often issued by blue-chip corporations and service companies. Typically, a corporation either pays the debenture on a specific date or makes periodic payments. The term is also used regarding a document granting a creditor money due from the government after fulfilling a condition. In the UK, a debenture is very similar to a bond, and debenture stock is like preferred stock.

1 Additional Answer
Ask.com Answer for: what does debentures mean
a certificate of drawback issued at a custom house.
Source: Dictionary.com
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