A debenture is a debt instrument that is not backed by collateral.
A debenture is a debt instrument that is not backed by collateral. Corporations typically issue debentures with terms of five to ten years and typically pay periodic interest payments called coupons. When the debenture matures, the issuer must repay the principal amount of the loan.
Investors in debentures assume a higher level of risk than investors in secured debt instruments, but they also typically receive a higher interest rate. Debentures are sometimes referred to as unsecured bonds.
Investing during times of uncertainty can be a difficult task.
An S-1 is a Securities and Exchange Commission (SEC) filing that provides information about a company going public.