Answer / ameet

A debenture may be defined as an acknowledgement of a debt
or loan raised by a company, just as share capital of a
company is divided in large number of parts, each part
being called a share, a loan raised by a company may be
divided in a large number of parts, each being called a
debenture. A debenture holder is certain of return on his
investment.

A bond is a debt-security in which the authorised issuer
owes the holders a debt and depending on the terms of bond
is obliged to pay interest or to repay the principal at a
later date termed as maturity. It can also be called as a
formal contract to repay borrowed money with interest at
fixed intervals.

Answer / chintan l. pasad

The most basic difference which is missed in the above
replies is that Bonds are issued by the Government whereas
Debentures are issued by Private Entities.....:)

Answer / nikki

A bond is fixed note of guaranted payment of intrest and
principal on a maturity date.
A debenture is similar but unsecured and is not guaranted
with any specific asstes of the company.It hsa a
characterization of more along with a line of stock
but bond is more a direct finance and loan.

Answer / harshal agrawal

the basic difference between bonds & debentures is that bonds are issued by goverment (central, state, recently some muncipal corporations also)and debentures are issued by private companies. both are issued to collect the loan (fund)from public in small amounts for specific period of time & pre-determine interest.

Answer / sai prasad

wat ammet mentioned above is right,, adding to that an
improtant poing,,A DEBENTURE CAN BE CONVERTED TO A SHARE OR
SECURITY. ex: M&M issued debenture for raising a loan of
6000 cr. so it will issue debentures with a option of
convertable i.e, CONVERTIBLE DEBENTURES,.after certain
period that debentures can be converted to M&M shares which
u can sell them at that time price..
Bonds are not coverted into shares or securities.. almost
risk free..

Answer / sivakumar reddy

debinture is long term loan and gets a fixed rate of
intrest ,debinture holder is creditor of the firm


where as bond is also long term debt but in europen market
we called bonds,bonds also get fixed rate of intrest
examples are govt bonda



sivakumar REDDY

what is the difference between Tally ERP 9 and Tally 7.2?

0 Answers  

What is Portfolio? What is the portfolio Management Style?

6 Answers   HCL,

What is the difference between asset management and invest management?

9 Answers   Bank Of America, BOB Technologies,

What do you understand by foreign draft?

0 Answers  

What is EBITDA??

6 Answers   Deloitte,

What are kiosks? These days' banks have come up with different kiosks. Name them.

0 Answers   IBPS,

What is Duty Draw-Back?

1 Answers  

if both the tax rate & interest rate is 10%. then from where the company raise fund from debt or equity. and which one is more suitable.

4 Answers  

When was NABARD established?

0 Answers   Nabard,

Which is the 7th Navigation Satellite?

0 Answers   Nabard,

What do you understand by the cashless economy?Does it have any pros and cons?

0 Answers   RBI,

What do you mean by interest coverage ratio? What does it indicate?

0 Answers