Investor Glossary-debtInvestor Glossary-debtInvestor Glossary-debtInvestor Glossary-debtInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Debt

WordPress
The HTML to link to this page
 

In business, a debt is an obligation of one party to pay another, usually as repayment for money borrowed. The entity that owes the debt is the debtor. The entity that must be repaid to satisfy the debt is typically called the creditor or in specific cases, a debt holder. A debtor unable to satisfy debt obligations is insolvent. Debt is characterized by the type of debt instrument, such as a loan or a bond. In accounting, debt obligations are grouped by time until obligation maturity. A current debt, or current liability, is due in under a year, and a long-term debt, or long-term liability, is payable in a year or more. Secured debt has collateral pledged as security against default, and unsecured debt does not. A business debt that the business owner is not personally liable for is called nonrecourse debt. Senior debt is legally entitled to satisfaction ahead of other debt; the latter is called subordinated debt. The amount paid above the principal borrowed is called the interest on the debt.



Rate this debt definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: required rate of return, ex-dividend, Zero Cost Collar, debt service coverage, quality assurance, class C shares, LIBOR, command economy, stock market close, per diem, VIX, reverse mortgage, 401a, current ratio, implied volatility, labor relations, stock split, deferred tax, APR, cancelled check, 1035 exchange, phantom income, deferred revenue, liquidity ratio, minority interest, in escrow, real GDP, irrevocable trust, average price per share, covered put, inflation, open position, 1031 exchange, Key Rate Duration, margin rate, EBITDA, risk management, retained earnings, 144a, wholly-owned subsidiary, FTSE, dividends payable, limit order, ex-dividend date, balance sheet, FICO score, annual return, option premium, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use