Question

What is a debenture? What are different kinds of debentures?

Answer 1

Definition Of Debenture:-

A debenture is an acknowledgement of debts and written promise by the company to repay the loans according to the terms laid down in the document. It is issued to money lenders under the seal of the company. It represents the loan of the company. Even public company can collect money for financing its business by selling debentures in the market.
In practice, different types of debentures have been issued. These are:

(a) On the basis of redemption:

(i) Redeemable debentures

(ii) Irredeemable debentures

(b) On the basis of security

(i) Secured debentures

(ii) Un-secured debentures / junk bonds

(c) On the basis of conversion

(i) Convertible debentures

(ii) Non-convertible debentures

(d) On the basis of registration

(i) Registered debentures

(ii) Bearer debentures

MARK BRAINLIEST...

Answer 2

A debenture is a type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond to secure capital.There are two types of debentures: Convertible debentures, which are convertible bonds or bonds that can be converted into equity shares of the issuing company after a predetermined period of time. ... They are debentures without the convertibility feature attached to them.