What Is Debenture Loans?


Debentures (or loan stock) exist as an alternative form of investing in a company that is more secure than investing in shares because interest payments must be made by the company and must be paid before dividends. Dividends, in contrast to debentures, are paid at the company's discretion.
Q&A Related to "What Is Debenture Loans"
A convertible debenture is a contract. Every convertible debenture has terms set out in great detail. The amount of interest and when and how it is paid is carefully explained. The
What is a Debenture? A Debenture is a debt security issued by a company (called the Issuer) which offers to pay interest in lieu of the money borrowed for a certain period. In essence
1.Avoid Dilution. When a corporation issues more stock, its current shareholder stakes may be diluted. For example, a shareholder who owns 100,000 out of 1 million shares of stock
Subprime loans typically were offered to the borrower as an adjustable-rate mortgage. Some had a frozen period and would adjust upward after a period of time. The payments would continue
1 Additional Answer
Debenture loans are long term loans, usually taken by companies where they agree to pay at a specified future date. The loan is repaid in a fixed rate of interest to the debenture holder annually until maturity. Should the company fail to pay either the interest or principal amount at maturity of the loan; the debenture holders can force the company into liquidation to pay the amount due.
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