Simple English definitions for legal terms
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A debenture stock is a type of investment where a company borrows money from investors and promises to make regular fixed payments. In English law, this type of investment is secured by the company's property or other fixed assets.
Debenture stock is a type of financial instrument that a company can issue to raise funds. It is a contract that provides for periodic, fixed payments to the investor.
For example, a company may issue debenture stock that pays a fixed interest rate of 5% per year. The investor would receive regular payments of 5% of their investment amount until the stock matures.
In English law, debenture stock is a type of bond that represents money borrowed by a company using its property or other fixed assets as security. This means that if the company is unable to repay the borrowed money, the investor can claim ownership of the company's assets.
Overall, debenture stock is a way for companies to raise funds while providing investors with a fixed return on their investment.