Debenture
Debenture is an unsecured bond; as such, it provides no lien against specific property as security for the obligation. Debenture holders are therefore general creditors whose claims are protected by property not otherwise pledged.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Debenture. An unsecured bond; as such, it provides no lien against specific property as security for the obligation. Debenture holders are therefore general creditors whose claims are protected by property not otherwise pledged.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Debenture. A long-term bond that is not secured by a mortgage on specific property.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
