DEBENTURES & BONDS
01/07/16 What’s the Difference between ‘DEBENTURES’ & ‘BONDS’?
In general the term debenture in British usage designates any security issued by companies other than their shares, including, therefore, what are in the United States commonly called bonds. When used in the United States, debenture generally designates an instrument secured by a floating charge junior to other charges secured by fixed mortgages, or, specif., one of a series of securities secured by a group of securities held in trust for the benefit of the debenture holders. In some cases the debenture is no more than an unsecured promissory note of the corporation bearing a fixed rate of interest.