Debenture Replace Text For Free

Debentures should not be confused with debenture stocks, which are an equity security that act much more like a preferred stock than a bond.Debenture stocks are an equity security, not a loan. This means debenture stockholders are put in position behind debentures and all other forms of debt for liquidation purposes.

Why do company issue debentures, when they can borrow money from Bank. Debentures are loan which company borrow's from general public .ex- borrowed fund can be used only for capital expenditure or they limit companies ability to raise additional funds till this loan is repaid.

A debenture is an agreement between a business and its lender enabling the lender to put a charge on the business's assets.This gives lenders the security of knowing they'll be able to recover the money they're owed if the business can't repay the loan.

A debenture is a type of bond or other debt instrument that is 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.

Debenture stockholders are entitled to dividend payments at fixed intervals. Like regular debentures, debenture stocks are normally not backed by any collateral.Debenture stocks are not perceived to be less safe than other equities since they carry the same degree of risk as other types of stock issue.

A debenture is a bond issued with no collateral. Instead, investors rely upon the general creditworthiness and reputation of the issuing entity to obtain a return of their investment plus interest income.Examples of debentures are Treasury bonds and Treasury bills.

Debenture stock, loan contract issued by a company or public body specifying an obligation to return borrowed funds and pay interest, secured by all or part of the company's property.Certificates specifying the amount of stock, with coupons for interest attached, are usually issued to the lenders.