What is debenture? What is preference share?
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A debenture is a type of debt instrument unsecured by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.
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Debenture :- It is an instrument acknowledging a debt issued under the common seal of the company. It specifies nominal/par value of debenture, the rate of interest to be paid, periodicity of payment, the tenure of debenture.
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