12:23 Mar 8, 2011 |
English language (monolingual) [PRO] Bus/Financial - Investment / Securities | |||||||
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| Selected response from: Martin Riordan Brazil Local time: 08:22 | ||||||
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SUMMARY OF ALL EXPLANATIONS PROVIDED | ||||
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4 +4 | debenture/debenture stock/bond/obligation |
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debenture/debenture stock/bond/obligation Explanation: You can find good definitions and explanations for financial instruments following the Wikipedia link below. In law, a debenture is a document that either creates a debt or acknowledges it. The term is used in corporate finance for a medium to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note. Debenture stock is a type of stock that makes fixed payments at scheduled intervals of time. A bond is a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal. A general obligation is a legal pledge in United States municipal finance, in which an entity pledges its full faith and credit to repay its debt, typically a general obligation bond. Reference: http://en.wikipedia.org/wiki/Debenture |
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Grading comment
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