Introduction
Do you like loans? Well, who doesn’t? Better yet, do you adore the idea of loans pretending to be stocks? Yes? Then, welcome to the magical world of loan stocks, also known affectionately as debentures!
So, grab a cup of coffee, put on your reading glasses, and let’s embark on this accounting adventure that’s as thrilling as bungee jumping with a calculator. 🤓📊
Loan Stock vs. Debenture: What’s the Dilly-O?
Loan stocks are simply long-term loans, but on steroids! These are the fancy-schmancy pieces of paper (much like bonds) that companies issue to finance their colossal dreams. Investors purchase these loan stocks, essentially lending money to the issuing company.
Quick Analogy: Imagine if Cinderella’s fairy godmother gave her stocks instead of glass slippers, and those stocks were termed
