Debenture PDF For Free

Like the owner's capital, interest is also payable on the principal amount of the debenture. The interest paid is regarded as an expense for the company and is deductible under Income Tax Act. Therefore, debentures are also known as loan capital because they are redeemable after a long period of time.

Difference between Share and Debenture A debenture is a debt instrument issued to raise a borrowed fund. A share form an Equity capital. A debenture form a debt capital. A holder of a share is known as a shareholder.

Debenture. / (d??b?nt??) / noun. Also called: debenture bond a long-term bond, bearing fixed interest and usually unsecured, issued by a company or governmental agency. a certificate acknowledging the debt of a stated sum of money to a specified person.

Debentures are medium or long-term debt instruments that a company issues to borrow capital. Bonds are debt instruments that private and public companies issue to borrow capital.

A debenture is an instrument used by a lender, such as a bank, when providing capital to companies and individuals. It enables the lender to secure loan repayments against the borrower's assets ? even if they default on the payment. A debenture can grant a fixed charge or a floating charge.

A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, they must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.

Two types of debentures are issued by the companies: Convertible Debentures and Non-Convertible Debentures.

Debenture is a written instrument acknowledging a debt under the common seal of the company. It contains a contract for repayment of principal after a specified period or at intervals or at the option of the company and for payment of interest at a fixed rate payable usually either half-yearly or yearly on fixed dates.

A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, they must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.

Examples of debentures are Treasury bonds and Treasury bills.