Reference Entry

debenture

Edited by John Black, Nigar Hashimzade and Gareth Myles

in A Dictionary of Economics

Fourth edition

Published in print January 2012 | ISBN: 9780199696321
Published online May 2013 | e-ISBN: 9780191759130
debenture

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A secured loan raised by a company, usually with fixed interest and sometimes with a fixed redemption date. Debenture holders have no control over the company so long as their interest is paid and any conditions of the loan are complied with, but if the interest is not paid or the conditions are broken they can take control of the company, and they rank before other shareholders in the event of liquidation. Convertible debentures are debentures carrying a right to convert to equity shares at some future date....

Reference Entry.  89 words. 

Subjects: Economics

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