Money talks.
The American school is rolling out a new admissions program, called the Debenture Program (don't ask me what it means; "debenture" is not in the dictionary).
"It's like you buy a bond in the school," explains hubby, "that gives you higher priority on the admissions list. You have to buy one per child, but can sell it back to the school later at the going price. It's possible that debenture bonds could appreciate... it's most likely they could, given the rate of new student applications."
Michael's company is going to buy four for each of their employees' students on the waiting list. "So, it looks like we'll get in this fall," says hubby.
Woo-hoo! One less thing to worry about... one down, nine hundred ninety-nine to go.
"It's like you buy a bond in the school," explains hubby, "that gives you higher priority on the admissions list. You have to buy one per child, but can sell it back to the school later at the going price. It's possible that debenture bonds could appreciate... it's most likely they could, given the rate of new student applications."
Michael's company is going to buy four for each of their employees' students on the waiting list. "So, it looks like we'll get in this fall," says hubby.
Woo-hoo! One less thing to worry about... one down, nine hundred ninety-nine to go.
Dearest Sister, Let me one up your geekiness!
ReplyDeletePer Investopedia:
Debenture is a type of debt instrument that is not secured by physical asset or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Bond buyers generally purchase debentures based on the belief that the bond issuer is unlikely to default on the repayment. An example of a government debenture would be any government-issued Treasury bond (T-bond) or Treasury bill (T-bill). T-bonds and T-bills are generally considered risk free because governments, at worst, can print off more money or raise taxes to pay these type of debts.
Debentures played a part in the recent economic crisis in that many people bought debentures issued by popular corporations just because of a general faith in the overall market. Many folks learned the hard way that markets do not always go up!
Also, you may see the word in reference to regular bonds issued with collateral, but then the collateral loses value. This in essence makes the bond a debenture (though not officially), so the financial news will often dub the now bad bond as a debenture.
Most nerdily,
Kathryn
Well it's good to know you can still buy your way into something in this world. :)
ReplyDeleteI guess you are leaving in a few days?! Can't wait to read all about your adventures!
Kathryn: Geek!
ReplyDeleteRhonda: Yes, we leave in three days. It's been a laundry and packing marathon! I'll just sleep on the plane.