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Moneyextra.com Dictionary

Loan stock

Loan stock is a security issued by a company in respect of a loan made by investors. Loan stock may be secured but often unlike a debenture it is not.

Loan stock holders are in the same place in the pecking order as other unsecured creditors if a company goes bust.

Loan stocks usually bear a fixed rate of interest.

See Also Online share dealing service and Stockmarket Centre

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2009-02-17 00:00:00 © Moneyextra.com