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- Dictionarydebenture/dɪˈbɛn(t)ʃə/
noun
- 1. a long-term security yielding a fixed rate of interest, issued by a company and secured against assets.
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Aug 5, 2024 · A debenture is a type of debt instrument that is not backed by any collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and...
When companies need to borrow some money to expand themselves they take the help of debentures. There are four different types of debentures. Let us learn the Debenture, features of debentures, advantages, and disadvantages of debentures in detail.
Aug 21, 2024 · What is a Debenture with an example? A debenture is a form of unsecured debt instrument that a company or government issues at a particular coupon rate to acquire funds from the public, for example, an unsecured bond.
Nov 29, 2023 · A debenture is a loan certificate issued by the company to its holders. Instead of borrowing entire funds from an individual, a company can divide the funds into certain small denominations or parts (i.e., debentures). Debentures carry interest at a certain percent (e.g., 8%).
Jan 19, 2024 · A debenture is a legal document that states the amount invested or lent, interest due, and the repayment plan. At the conclusion of the term, the investor receives the principal and interest. According to Section 2 (12) of the Indian Companies Act 1956, “a debenture is a document which either creates a debt or acknowledges it.”
Sep 28, 2021 · Debenture is debt to the Company. It’s like a loan which needs to be repaid over a certain period of time. Debentures carry fixed interest rate. Lets discuss more on debentures. Both corporations and governments frequently issue debentures to raise capital or funds.
Dec 21, 2023 · Introduction. Meaning of debentures according to Companies Act, 2013. Types of debentures. Debenture based on security. Secured debentures. Unsecured debentures. Debentures based on tenure. Redeemable debentures. Perpetual or Irredeemable debentures. Debentures based on conversion. Convertible debentures. Non-convertible debentures.
In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond , loan stock or note .
Sep 23, 2024 · A debenture is a type of long-term debt instrument that is not backed by collateral. Debentures are backed only by the creditworthiness and reputation of the issuer. Both corporations and governments frequently issue debentures to raise capital or funds.
Debentures are fixed-rate loans with fixed interest payments that companies use to raise money. After a certain amount of time, convertible debentures can be turned into shares of the company that issued them.
