Convertible Securities (Such As Debentures Or Preferred Stock)
Convertible securities combine aspects of both stocks and bonds, thus creating a truly 'best of both worlds' investment.
debentures
Unsecured, long-term corporate bonds. Even though debenture holders are not protected by collateral, they still have a legal right to repayment. In the event of default, debenture holders are treated like other unsecured creditors.
Debentures
A type of long-term unsecured bond (loan), taken out by a company, which it agrees to repay at a specified future date. Usually secured against specific assets (mortgage debentures) or through a floating charge on the firms assets.
Debentures Unsecured debt
Debt IOU, such as bank loans, bonds, commercial paper, government bonds and bills.
Debentures: Bonds not secured by any specific property, based on the full faith and credit of the issuer.
Debit balance: Money owed to a broker/dealer by a customer.
Debentures Definition
Definition of a debenture. A debenture is a loan issued by a firm. It usually involves a fixed repayment schedule, in terms of both time and interest.
Debentures are fixed interest securities in return for long-term loans, they tend to be dated for redemption between ten and forty years ahead of the date of issue.
Debentures are similar to bonds, but typically not secured by the pledge of specific corporate assets. They may, however, be secured by a "floating charge" on the issuer's assets generally.
Debenture (Guaranteed under CDIC): ...
Debentures are usually offered in issues under an indenture, a document that sets the terms of the exchange. A debenture is usually a bearer instrument.
Debentures are unsecured general obligations of the issuing corporation. The indenture will regularly limit issuance of additional secured and unsecured debt.
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Debentures, gilts, and loan stock which have no fixed redemption date or undated. Generally, they are therefore only repayable at the option of the borrower or, as with companies, on a liquidation or in special circumstances such as a takeover.
IRS
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Debentures
A debenture is a bond that is not secured with any collateral. In general, FI regulators prohibit FIs from issuing secured bonds because they would give priority of payment over the depositors, policy holders and liability guarantors.
Debentures that have been separated from other securities, such as warrants, which were originally issued together as a unit.
Subject Bid, Subject OfferExpand/Collapse ...
Agency Debentures
Debt issued by a federal agency or a government-sponsored enterprise (GSE) for financing purposes. These types of debentures are not backed by collateral, but by the integrity and credit worthiness of the issuer.
Bearer debentures with a maturity of seven days to two years (generally 30-90 days), which are not publicly quoted. The minimum volume is EUR 0.5 mn. Their tradability in comparison to other money market investments makes them attractive.
Bonds or debentures are called flat when the quoted market price is only the total cost of the bond or debenture, with no accrued interest. Issues in default are normally quoted and traded flat.
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Although debentures sound riskier than secured bonds, they aren't when they're issued by well-established companies with good credit ratings.
Debit ...
Instalment Debentures
A bond or debenture issue in which a predetermined amount of principal matures each year.
Instalment Receipts ...
Convertible Debentures
A company may issue Preferred Stock which can be converted into Common Stock or long-term notes that are convertible into Common Stock (called convertible debentures).
Convertible Security ...
Subordinated Debentures: Corporations will meet their obligations to holders of more senior securities before paying their debts to holders of subordinated debentures. The latter's rights are subordinated to those of other creditors.
Unsecured bonds, called debentures, are general obligations of the issuer. They are not secured by any specific collateral, so investors' claims are backed only by the corporation's general assets.
Long-term debts/debentures/bonds, which are convertible, at some future date and at the option of the lender, into equity, i.e. Ordinary shares/Common stock of the borrowing company.
Debentures, gilts and loan stock which have no fixed redemption date or are undated. For this reason, they are generally only repayable at the option of the borrower, or with companies, on liquidation or in special circumstances such as a takeover.
Dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock, as specified when the convertible is issued. Conversion ratio Applies mainly to convertible securities.
effective net worth The value of shareholder's equity in a firm plus subordinated debt (debentures... effective par The par value for preferred stock that would ordinarily correspond to a given dividend rate.
Salomon Smith Barney Inflation-Linked Security Index (ILSI)SM This index measures the return of debentures with fixed-rate coupon payments that adjust for inflation as measured by the Consumer Price Index (CPI).
Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond in order to secure capital.
DEBT CAPITAL -- Funds obtained through various types of loan which normally comprehends debentures and bonds bearing fixed interest.
Redemption: repayment of shares, debentures or loans.
Redemption yield: the yield given by an investment expressed as a percentage and taking into account both income and capital gain or loss.
Such loans (typically debentures) are usually over a stated period of ...(Read more)
Loan Origination
The steps taken by a lending institution up to the time a loan is made and placed on its books, including solicitation and processing of app...
They intern issue debentures, short-term notes and mortgage-backed securities. Also see FNMA Home Page. FEDERAL FLOOD INSURANCE A form of insurance designed to reimburse property owners from loss due to the defined peril of flood.
Bonds backed by collateral are termed secured while those that are not secured are called debentures. A sinking fund bond obligates the issuer to set aside some of its earnings to retire bonds periodically.
Essar Steel used convertible debentures with warrants and loyalty coupons, Tata Iron and Steel Company Limited issued secured Premium Notes with warrants, ...
Hybrids of hybrids now include Monthly Income Debt Securities (MIDS), which are subordinated debentures with 30-50-year maturities, issued directly by the parent company, which guarantees monthly payments; the quarterly version of MIDS, called QUIDS; ...
Capitalization may include bonds, debentures, preferred and common stock, and surplus. Bonds and debentures are usually carried on the books of the issuing company in terms of their par or face value.
The fund manager invests the pool of money referred to as a corpus into various securities that are a collection of shares, money market ventures and debentures. These securities include stocks, bonds, and various other securities.
Capitalization includes bonds, debentures, preferred stock, common stock, and surplus, which represent the sources of long-term financing of the company.
average cost of firm's capital the average cost of a company's financing (equity, debentures, bank loans) weighted according to the proportion each element bears to the total pool of capital.
Most bonds issued by large corporations are, in fact, debentures, which are backed by the corporation's reputation rather than secured by any collateral, such as the company's buildings or its inventory.
Coupon Rate It is the rate of annual interest on the PAR VALUE of DEBENTURES or BONDS that an issuer promises to pay. In India, till a few years ago, coupon rates were subject to a ceiling stipulated by the Controller of Capital Issues.
The trust sells their preferred securities to investors, in denominations ranging from $25 upward, and then uses the proceeds from the sale of the preferred stock to buy debt securities (debentures, etc.) from the company setting up the trust.
Most bonds issued by corporations are debentures, which are backed by its reputation rather than by any collateral, such as the company's buildings or its inventory.
A written contract, also known as a "Deed of Trust", under which bonds and debentures are issued, setting forth maturity date, interest rate, redemption rights, call privileges and other terms.
purpose was to issue debentures overseas and invest the proceeds in foreign operations, with the interest paid
to foreign bondholders not subject to U.S. withholding tax. The elimination of the corporate withholding tax ...
Debentures are generally issued by service corporations that have few mortgageable assets, or by blue-chip companies that are stable enough to invite unsecured loans.
Controlling Shareholder: As of August 2011, Fairfax financial owns 37% of the common shares and 38% of the debentures. Founder Bill Comrie owns 27% of the common shares and 15% of the debentures.
Market Equity Capitalization (Value) $ millions:
$309.
Examples of long-term liabilities are debentures, mortgage loans and other bank loans (note: not all bank loans are long term as not all are paid over a period greater than a year, the example is bridging loan.) ...
CAPITAL FUNDS - is the total of capital debentures, if any, capital stock, if any, surplus, undivided p...
CAPITAL GAIN - When you sell an asset at a higher price than you paid for it, the difference is your ca...
Although there are legal and other differences between bonds and debentures, the terms are loosely used and in practice investors can ignore the difference. It is usually more important to look at the terms on which a particular security is issued.
Funds that invest in income bearing instruments such as corporate debentures, PSU bonds, gilts, treasury bills, certificates of deposit and commercial papers. These funds are the least risky and are generally preferred by risk-averse investors.
usually in Delaware, whose sole purpose was to issue debentures overseas and invest the proceeds in foreign operations, with the interest paid to foreign bondholders not subject to U.S. withholding tax.
Fixed interest securities: Debt securities such as term deposits, debentures and bonds, which pay a constant level of interest.
ISFDS - Are Indexed Sinking Fund Debentures.
ISID - Is the International Securities Identification Directory.
ISIN - Is the International Securities Identification Number.
* Unsecured bonds or debentures are only backed by the full faith and credit of the issuer. There is no specific collateral.
Obligation - The term 'obligation' includes bonds, debentures, notes, certificates, and other evidence of indebtedness regardless of how denominated. (Treasury Regulation ยง46.4701-1(b)(2)) ...
Applies mainly to convertible securities. Dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock, as specified when the convertible is issued.
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Personal Finance Glossary ...
Debenture - A common type of bond issued by large, well-established organizations. Holders of debentures representing corporate indebtedness are creditors of the corporation and entitled to payment before shareholders upon dissolution of the ...
Treasury bills and debentures offer more security than other instruments, but they come with less return to the investor. While products vary in terms of return on investment, all of them are intended to provide benefits if handled carefully.
Fixed interest securities relates to bonds, bills, stocks and debentures which offer a fixed rate of interest per period. The purchaser buys the income stream and the seller receives loan.
Popular terms ...
Debenture: An unsecured bond. Most bonds issued by corporations are debentures, which are backed by their reputation rather than by any collateral, such as the company's buildings or its inventory.
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