Debt financing

Debt financing

When a firm sells bonds, bills or notes to raise money. The purchasers will become creditors, and expect the principal and interest on the debt to be repaid.

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Part of Speech: noun
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Blossary:
Industry/Domain: Financial services
Category: Stocks & securities
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Related terms

debt financing

Law; General law

A company’s raising money by issuing bonds or notes rather than by issuing stock. Raising money by issuing stock is called equity financing.

debt financing

Health care; Insurance; Managed care; Health insurance

Borrowing money or capital at current interest rate costs.

debt financing

Financial services; Private equity

Financing by selling bonds, notes, or other debt instruments.

debt financing

Financial services; Venture capital

When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the ...

debt financing

Law; Legal services; General law

A company’s raising money by issuing bonds or notes rather than by issuing stock. Raising money by issuing stock is called equity financing.

above par

Financial services; Stocks &securities

If bonds are re-sold on the secondary market, and if interest rates are lower that the bond's coupon rate, the bond will be sold at a premium, or above par.

P/E ratio

Financial services; Stocks &securities

The ratio of a company's current price per share and average earnings per share. The former is divided by the latter. A high ratio suggests high growth potential in the future.