debenture etymology

Etymology

The term "debenture" originates from the Latin word "debentur," meaning "they owe."

Meaning and Origin

A debenture is a type of debt instrument that represents a loan made by an investor to a company. It is backed by the company's assets and usually carries a fixed interest rate.

Debentures emerged in the late 16th century in England when merchants would issue bonds to finance their trading expeditions. These bonds were called "debentures" because they acknowledged the company's obligation to repay the loan. Initially, debentures were not secured by collateral, but over time, it became common for companies to secure them with specific assets.

In the 19th century, debentures became more widely used as a form of corporate financing. Companies would issue debentures to raise funds for capital projects, expansion, or acquisitions. Debentures offered investors a secure and stable investment with a fixed return.

Types of Debentures

There are various types of debentures, including:

• Secured debentures: Backed by specific assets of the company.
• Unsecured debentures: Not backed by any specific assets.
• Convertible debentures: Can be converted into equity shares of the company.
• Subordinated debentures: Have a lower priority in repayment of interest and principal than other debt obligations.

Features of Debentures

Debentures typically have the following features:

• Fixed interest rate
• Fixed maturity date
• Security (in the case of secured debentures)
• Protection against default (through the appointment of trustees)
• Tradability (can be bought and sold in the secondary market)

debenture relate terms

• able

  Etymology of able The word able comes from the Old French word habile which in tur

• avoirdupois

  Etymology Medieval Latin averia de pois goods sold by weight Old French avoir de

• binnacle

  Etymology The word binnacle is derived from the Middle English word bynakul which is

• cohabit

  Etymology The word cohabit is derived from the following Latin roots con togethe

• cohabitation

  Etymology and Origin Cohabitation from Latin cohabitare meaning to dwell together

• debenture

  Etymology The term debenture originates from the Latin word debentur meaning they o

• debit

  Etymology The word debit derives from the Latin verb debere which means to owe M

• debt

  Etymology The word debt comes from the Latin word debitum which means a thing owed

• duty

  Etymology Middle English duete duetee from Anglo Norman French duete dutee from Lat

• endeavor

  Etymology Old French endevoir to make an effort strive Late Latin indevotare ind

• exhibit

  Etymology The word exhibit comes from the Latin verb exhibere which means to show f

• exhibition

  Etymology Exhibition derives from the Latin word exhibēre meaning to show forth pr

• forgive

  Etymology The word forgive originates from the Old English word forgifan which mean

• gavel

  Etymology Old French gavle Latin gabalum Gaulish term for a public assembly Meani

• gift

  Etymology The word gift comes from the Old English word gift meaning a giving or

• give

  Etymology The word etymology comes from the Greek word etymos meaning true or re

• habiliment

  Etymology The word habilment comes from the Old French term habiliement which is der

• habit

  Etymology The word habit comes from the Old French word abit which is ultimately d

• habitable

  Habitable Etymology Late 16th century from French habitable from Late Latin habitabil

• habitant

  Etymology Habit noun is derived from the Latin word habitus meaning outward appearan

• habitat

  Etymology habitat n mid 17th century from French habitat from Latin habitare dwel

• habitation

  Etymology The word habitation is derived from the Latin word habitare meaning to dw

• habitual

  Etymology Latin habitualis habitus habit alis pertaining to Meaning

• habituate

  Etymology Latin habituare to dwell reside be accustomed Proto Indo European root

• habituation

  Etymology Late 17th century from Latin habitualis customary from habitus dres

• habitude

  Etymology French habitude Latin habitudo from habere to have to hold Meaning

• habitue

  Etymology The word habitue is derived from the French word habitué which means reg

• inhabit

  Etymology Latin inhabitare to dwell in live in Proto Indo European s peh₂

• inhibit

  Etymology The word inhibit originates from the Latin word inhibere which means to

• inhibition

  Etymology Latin inhibitio In in into habitus state condition Meaning

• malady

  Etymology Middle English maladie from Old French maladie derived from Medieval Latin

• prebend

  Etymology Middle French prébende Medieval Latin praebenda Latin praebere to give b

• prohibit

  Etymology The word prohibit comes from the Latin prohibere which means to hold bac

• prohibition

  Etymology From the Latin word prohibere meaning to forbid to prevent The pro p

• provender

  Etymology Middle English provender from Anglo Norman French provende from Latin prov

• instrument

  Etymology The word instrument comes from the Latin word instrumentum which means t

• bond

  Etymology The word bond derives from the Old English word band which meant a tie o

• consumption

  Etymology Old French consumpcion Latin consumptionem past participle of consumere t

• trespass

  Etymology of Trespass The word trespass originated from the Old French term trespas

• Beelzebub

  Etymology The name Beelzebub is derived from two Hebrew words Baal בַּעַל

• promise

  Etymology The word promise comes from the Old French word promesse which in turn de

• ambiguous

  Etymology Ambiguous etymology refers to words whose origin and history are uncertain or

• obsequious

  Etymology From Middle French obsequieux from Anglo Norman obsequeux from Medieval Lat

• treasure

• sober

  Etymology Late 14th century from Middle English sobur from Old French sobre from Lat