shareholder loan

Definition

A loan made to a company from an individual shareholder or partnership that exchanges money for interest payments. The loan can be secured by the shares (an equity loan) or through a debenture. This type of loan ranks below commercial loans if it is not secured by collateral, making it subordinated debt. A shareholder loan is often associated with S Corporations.

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shareholder loan is ...

... part of the Lending & Credit and Stocks subjects.

Nearby Terms

share broker
share class
share price
share repurchase plan
shareholder
shareholder loan
shareholder of record
shareholder value
shareholders' equity
shareholders' letter
shares authorized