Debentures
(Noun) | Pronunciation: /dɪˈbɛn.tʃərz/
Definition & Meaning
The word “debentures” refers to a type of long-term debt instrument used by companies and governments to raise capital.
- In Finance – A bond-like instrument issued without collateral, relying on creditworthiness.
- In Investment – A fixed-income security that offers regular interest payments.
- In Corporate Use – A way for businesses to secure funds without giving up ownership.
💡 Did You Know? Unlike traditional loans, debentures are often unsecured, meaning they are backed only by the issuer’s promise to repay!
Word Origin & History
- Etymology: Derived from Latin “debentur”, meaning “they are owed.”
- Historical Usage: Used since the 15th century in financial and legal documents.
- Cultural Influence: Debentures play a crucial role in modern corporate and government financing.
📖 Example: The company issued debentures to raise capital for expansion.
Synonyms & Antonyms
🔹 Synonyms (Similar Meanings)
- Bonds
- Securities
- Promissory notes
- Corporate debt
🔻 Antonyms (Opposite Meanings)
- Equity
- Shares
- Stocks
- Assets
💡 Word Tip: Debentures differ from stocks—they do not give ownership rights but ensure fixed interest returns.
Example Sentences
✅ Many investors prefer debentures for stable returns.
✅ The company raised funds by issuing debentures.
✅ Unlike stocks, debentures provide fixed interest income.
✅ Government debentures are considered low-risk investments.
✅ Convertible debentures can be exchanged for company shares.
✅ Some debentures come with high interest but carry more risk.
✅ Secured debentures are backed by company assets.
✅ Corporate debentures help businesses grow without losing ownership.
✅ Many financial advisors recommend debentures for long-term investing.
📌 Challenge: Can you name a company that has issued debentures recently?
Related Words & Phrases
These words are commonly linked to “debentures”:
- Bonds
- Fixed-income securities
- Convertible securities
- Corporate bonds
- Treasury bonds
- Credit rating
- Yield
- Maturity period
Example: Investors analyze the credit rating of debentures before purchasing them.
Usage Trends & Popularity
🧐 Trending Now: Governments and companies frequently issue debentures to manage debt and fund projects.
📢 Discuss: Are debentures a safer investment than stocks?
Fun Activities & Challenges
🔠 Word Puzzle: Unscramble this word → D E T U B E N R E S
🧠 Quick Quiz:
💭 What is a debenture?
A) A type of bond ✅
B) A stock in a company
C) A government tax
✍ Word Story Challenge: Write a short paragraph using “debentures” in a creative way!
User Contributions & Comments
💬 Share Your Thoughts: Would you invest in debentures? Why or why not?
📢 Join the discussion below!
Advanced Learning & Fun Facts
Types of Debentures
- Convertible Debentures – Can be converted into shares.
- Non-Convertible Debentures (NCDs) – Cannot be converted into shares but offer higher interest rates.
- Secured Debentures – Backed by company assets.
- Unsecured Debentures – Rely only on the issuer’s reputation.
Financial & Economic Use
- Debenture holders are creditors, not shareholders.
- Interest on debentures is paid before dividends on shares.
Famous Quotes
“In finance, debentures are a bridge between risk and stability.”
— Investment Expert
💡 Did You Know? Some debentures are traded on stock exchanges just like shares!