What is a Debenture?

A debenture is a debt paper issued by a company with the aim of raising money from the public. It has a specified tenure and offers a fixed interest rate called coupon.If on maturity the debentures are converted into shares of the company, it is a Convertible debenture and if the principle along with the accumulated interest is paid back to the investor it is a Non-Convertible Debenture. NCDs are of two types Secured and Unsecured.A secured NCD is backed by the assets of the company and in case the company fails to service its obligation (i.e.:...

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Definition of 'Current Account Deficit'

Occurs when a country's total imports of goods, services and transfers is greater than the country's total export of goods, services and transfers....

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Definition of 'Fiscal Deficit'

When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly defici...

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Definition of 'Trade Deficit'

An economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign marke...

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