Vocabulary Entry

debenture

|noun

noun

A debenture is a type of long-term debt instrument that is not backed by physical assets or collateral but by the general creditworthiness and reputation of the issuer.

Example Sentences

"The company issued a debenture to raise funds for its expansion project."

"Investors were attracted to the safety and reliability of the debenture."

"She decided to invest in a government debenture for better security."