Explain the meaning and types of debentures
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Debenture is a security issued or allotted to the investors under the seal of the company, who become creditors of the company. Therefore, a debenture may be defined as a document issued by the company as an evidence of its debt”. There are various types of debentures like redeemable, irredeemable, perpetual, convertible, non-convertible, fully, partly, secured, mortgage, unsecured, naked, first mortgaged, second mortgaged, the bearer, fixed, floating rate, coupon rate, zero coupon, secured premium notes, callable, puttable, etc.
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Meaning of Debentures:-
A debenture is a document or certificate issued by a company under its seal as an acknowledgement of its debt. It is also an undertaking to repay the specified sum with interest to its holder.
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