Debenture stock


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Related to Debenture stock: preferred stock, bonds, debenture bond

Debenture stock

A type of stock that makes fixed payments at scheduled intervals of time. Debenture stock differs from a debenture in that it has the status of equity, not debt, in liquidation.

Debenture Stock

A stock entitling the bearer to a certain fixed dividend at set periods of time. Like debenture debt, debenture stock offers fixed payments with no collateral beyond the company's performance. Unlike debenture debt, however, debenture stock is a form of equity, which puts it in a position behind all debts in the event of liquidation. Debenture stock operates almost identically to preferred stock.
References in periodicals archive ?
But, if successful, the company may decide to launch itself on the Alternative Investment Market, in which case the debenture stock may be convertible into shares.
Managing director Mr Paul Fearnley visited the Oval to launch an offer of debenture stock to raise pounds 1 million for the new firm Fearnley Plc.