mention three advantages of issuing debentures
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ADVERTISEMENTS: (c) Cost of debenture is relatively lower than preference shares and equity shares. (d) Issue of debentures is advantageous during times of inflation. (e) Interest on debenture is payable even if there is a loss, so debenture holders bear no risk.
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1)Secured investments. Debentures provide greatest security to the investors.
2)Fixed return. Debentures guarantee a fixed rate of interest.
3)Stable prices.
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