what do you mean by debentures? when debentures be issued?
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debentures are important instrument for raising long term debit capital . A company can raise funds through issue of debentures which bear a fix rate of interest .
The debentures are issued by company is an acknowledgement that the company has borrowed a certain amount of money which it promise to repay at future date
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Debenture are funds or borrowing from the public to contribute to the capital of the business. It is an instrument of acknowledgement of debt that a company has taken debt from the debentureholder and it will be repayed at a given period of time.
Debentures are to be issued when a company has enough creditworthiness and its financial position is not weak.
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