Question

What are Debentures?
Answer in points only​

Answer 1

DEBENTURES

1.Debentures are a debt instrument used by companies and government to issue the loan.

2.The loan is issued to corporates based on their reputation at a fixed rate of interest

3. Debentures are also known as a bond which serves as an IOU between issuers and purchaser.

4.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.