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Loan stock
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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 Stockmarket Centre
Last Updated: May 2007 © Moneyextra.com
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