An unsecured bond or debt instrument backed only by the creditworthiness and reputation of the issuer, not by specific collateral. Companies issue debentures to raise capital for expansion or operations.
From Latin 'debentur' meaning 'they are owed,' from the phrase 'debentur mihi' (they are owed to me) used in medieval accounting. Originally appeared in English customs records in the 15th century as certificates of debt owed by the crown.
Try Another Word