What is an Debenture
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Answer / jayachauhan20@yahoo.com
debenture is a secured loan . company pays the interest on debenture to debenture holder . It is secured because if co. become an insolvent get their money first.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / madhut.1
It An unsecured bond. Most bonds issued by large
corporations are debentures, which are backed by the
corporation's reputation rather than secured by collateral.
| Is This Answer Correct ? | 5 Yes | 2 No |
Answer / pravin kamble
Debenture is the Liability of the company, to increase the
fund flow of the company, companies collect direct money
from the market either by selling shares or by selling
debentures. But debentures are more secure than shares,
share holders are owner of the company, but debenture
holders are trusty for the company.
So at the time of insolvancy, by low company gives
preferance to their trusties, because company had taken a
loan from them, so they are more secure than the share
holders.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / shivani jhamb
Debenture is a debt instrument which carries a fixed rate
of interest. Debenture is a liabitility for the
organisation.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / pvinay0910
The most common form of long term loan taken by the company
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Answer / ashit kumar mallick
Debenture are more secure than shares, It help to increse
funflow .Its a company liability
| Is This Answer Correct ? | 0 Yes | 1 No |
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