Question

4. Explain in detail the types of debentures a company can issue​

Answer 1

Explanation:

Debentures are a debt instrument used by companies and government to issue the loan. The loan is issued to corporates based on their reputation at a fixed rate of interest. Debentures are also known as a bond which serves as an IOU between issuers and purchaser. Companies use debentures when they need to borrow the money at a fixed rate of interest for its expansion. Secured and Unsecured, Registered and Bearer, Convertible and Non-Convertible, First and Second are four types of Debentures

Answer 2

Explanation:

Secured and Unsecured Debentures:

Secured and Unsecured Debentures:When at the time of issue of debentures the assets of company are mortgaged in favour of debenture holders, such debentures are known as secured debentures. The charge on assets of company is of two types –

(i) Fixed charge

(ii) Floating charge

PLEASE MARK AS BRAINLIST AND FOLLOW ME FOR MORE QUALITY TYPE OF ANSWER THANK YOU ☺☺☺☺☺