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Difference between loan capital and loan stock?

D

Danny

Active Member
The core reading seems to imply that loan capital and loan stock are two different things. Can I just clarify what is meant by each?

Thanks!
 
Loan capital is like the total amount a company has borrowed altogether. It's the sum total of all the money they owe from different loans.

Loan stock, on the other hand, is a specific type of loan. It's like when a company divides up its debt into parts and sells them to investors. Those investors get regular fixed payments like interest until the company pays back the original amount.
 
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