debenture
(noun)
A certificate that certifies an amount of money owed to someone; a certificate of indebtedness.
Examples of debenture in the following topics:
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Long-Term Loans
- Three common examples of long term loans are government debt, mortgages, and debentures (bonds).
- Three common examples of long term loans are government debt, mortgages, and bonds or debentures .
- In general, debentures are freely transferable by the debenture holder.
- Debenture holders have no right to vote in the company's general meetings of shareholders, but they may hold separate meetings or votes (regarding, for instance, changes to the rights attached to the debentures).
- The interest paid to debenture holders is a charge against profit in the company's financial statements.
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Types of Bonds
- A debenture bond, or simply a debenture.
- Although any type of bond may be convertible, issuers add this feature to make risky debenture bonds more attractive to investors.
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Current Maturities of Long-Term Debt
- Examples of long-term liabilities are debentures, bonds, mortgage loans and other bank loans (it should be noted that not all bank loans are long term since not all are paid over a period greater than one year. ) Also long-term liabilities are a way for a company to show the existence of debt that can be paid in a time period longer than one year, a sign that the company is able to obtain long-term financing .
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Conflicts of Interest Between Shareholders and Bondholders
- If there is no profit, the shareholder does not receive a dividend, while interest is paid to debenture-holders regardless of whether or not a profit has been made.
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Securities Exchange Act of 1934
- The Securities Exchange Act of 1934 (also called the Exchange Act, '34 Act, or Act of '34) is a law governing the secondary trading of securities, including stocks, bonds, and debentures, in the United States of America.
- One area subject to 34 Act regulation is the actual securities exchange -- the physical place where people purchase and sell securities (stocks, bonds, notes of debenture).
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Outputs of Accounting
- Financial institutions (banks and other lending companies) use statements to decide whether to grant a company fresh working capital or extend debt securities (such as a long-term bank loan or debentures).
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Liabilities
- Examples of long-term liabilities include long-term bonds, leases, pension obligations, and debentures.
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Sinking Funds
- More specifically, it is a fund into which money can be deposited, so that over time preferred stock, debentures or stocks can be retired.
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Funding the International Business
- With-in company loans: a new company can raise funds only through external sources, such as shares, debentures, loans, public deposits, etc., but an existing firm which needs finance for its future growth and expansion can generate funds through retained earnings.
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Uses of Financial Reports
- Financial institutions (banks and other lending companies) use them to decide whether to grant a company working capital or extend debt securities (such as long-term bank loans or debentures) to finance expansion and other significant expenditures.