DEBENTURE HOLDER Meaning and
Definition
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A debenture holder refers to an individual or entity that owns a debenture, which is a type of bond or debt instrument issued by a company or government entity to raise capital. Debentures are long-term debt securities that serve as an alternative source of funding for the issuer. They are usually backed by the issuer's general credit and ability to make interest payments and repay the principal amount at maturity.
As a debenture holder, the individual or entity is considered a creditor of the issuer, being entitled to receive periodic interest payments (usually semi-annually or annually) as specified in the debenture agreement. The interest payments, also known as coupon payments, are typically fixed and expressed as a percentage of the debenture's face value. Upon maturity, the debenture holder is entitled to receive the full face value of the debenture.
Debenture holders usually have a lower priority compared to secured creditors in case of bankruptcy or liquidation of the issuer. However, they have a higher priority than equity shareholders. The rights and privileges of debenture holders, including interest payments, repayment terms, and priority in case of default, are outlined in the debenture agreement.
Overall, debenture holders play a crucial role in the financing process of companies or governments, providing them with the necessary capital to finance operations, expansion, or specific projects. By holding debentures, investors aim to earn a return on their investment through regular interest payments and the repayment of the principal amount at maturity.
Common Misspellings for DEBENTURE HOLDER
- sebenture holder
- xebenture holder
- cebenture holder
- febenture holder
- rebenture holder
- eebenture holder
- dwbenture holder
- dsbenture holder
- ddbenture holder
- drbenture holder
- d4benture holder
- d3benture holder
- deventure holder
- denenture holder
- dehenture holder
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- debwnture holder
- debsnture holder
- debdnture holder
- debrnture holder
Etymology of DEBENTURE HOLDER
The word "debenture" comes from the Latin word "debentur", which means "there are due". It first appeared in English in the early 17th century. "Debenture" originally referred to a written acknowledgment of debt or a certificate issued by a company or government to acknowledge its indebtedness to a particular person.
The term "holder" is derived from the Old English word "haltian", meaning "to hold" or "to grasp". It has been used in English since the Middle Ages to refer to a person who possesses or owns something.
Therefore, the term "debenture holder" refers to an individual or entity that holds or possesses a debenture, which is a type of unsecured debt instrument issued by a company or government.
