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Difference betwen debentures and bonds

Answer Posted / anil kumar

Both are liabilities of the issuing company and have
priority claim over the shareholders.

While issuing bonds, the issuing company
specifies 'certain' assets as security against the issue.
In case of default by the issuing company, the bond holders
can first recover their dues from the proceeds of the
specified assets.

But when debentures a are issued, no specific assets are
marked as security, but the debenture holders will have
claim over all the assets of the compnay, except those on
which specific charges have been created.

Is This Answer Correct ?    24 Yes 3 No



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