Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.
Related to Debenture stock: preferred stock, bonds, debenture bond
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.