Debt

Filed Under »
Dictionary Says

Definition of 'Debt'

An amount of money borrowed by one party from another. Many corporations/individuals use debt as a method for making large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.

Investopedia Says

Investopedia explains 'Debt'

Bonds, loans and commercial paper are all examples of debt. For example, a company may look to borrow $1 million so they can buy a certain piece of equipment. In this case, the debt of $1 million will need to be paid back (with interest owing) to the creditor at a later date.

Related Video for 'Debt'

Articles Of Interest

  1.

    Test Your Money Personality

    Find out which of the five profiles fits your style, and how this will affect your future.

  2. How Much Debt Can You Handle?

    Follow these five steps to manage debt without cutting up your credit cards.

  3. Digging Out Of Personal Debt

    Find out why good intentions can put consumers in an even bigger hole than before.

  4. Prioritizing Debt

    Debt affects your finances and your life. We show you how to free yourself from this financial ball and chain.

  5. Can You Live A Debt-Free Life?

    Avoiding loans goes against the norm but it can be possible - and enjoyable.

  6. What Is A Corporate Credit Rating?

    Is the bond you're buying investment grade, or just junk? Find out how check the score.

  7. Will Corporate Debt Drag Your Stock Down?

    Borrowed funds can mean a leg up for companies, or the boot for investors. Find out how to tell the difference.

  8. Top 10 Ways To Avoid Burnout In Corporate Finance

    Burnout rates in the corporate finance field are extremely high. Find out some of the most common causes, and how to prevent them.

  9. Should You Close Your Credit Card?

    Find out the consequences before deciding to end your credit agreement.

  10. Debt Reckoning

    Learn about debt ratios and how to use them to assess a company's financial health. You could save a lot of money!
comments powered by Disqus
Marketplace
Hot Definitions

  1. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...

  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center