Definition

A type of financial document that shows a loan or debt, often issued by a company or government, which promises to pay back the borrowed money with interest.

Example

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

Conversation

Have you ever invested in a debenture?

No, I haven't, but I've heard they can be pretty safe.

Yeah, they're like bonds that aren't backed by specific assets, right?

Exactly! It's more about trusting the issuer's credit.

Synonyms & Antonyms

Root Explanation

Debenture is derived from the Latin word "debere" (meaning to owe) and the suffix "-ure" (indicating a process or result). The term originally referred to a document acknowledging a debt, thus combining the idea of owing with the formalization of that obligation.

Memory Tip

Think of 'owing' ('debere') as the core idea behind a debenture, which is a formal document that signifies a debt.

Visually Confused Words