What is a Debenture? (Step by Step Tutorial)
WallStreetMojo
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What is a Debenture? (Step by Step Tutorial)
25 751 просмотр · 4 года назад
WallStreetMojo
128 тыс. подписчиков
25 751 просмотр · 4 года назад
In this video, we explain all about Debentures, how it works, types, advantages, and disadvantages.
What is a Debenture?
Debentures refer to long-term debt instruments issued by a government or corporation to meet its financial requirements—for example, a government raising funds to construct roads for the public.
Type of debentures?
Secured debentures
Unsecured debentures
Redeemable debentures
non-redeemable debentures
convertible debentures
Non-convertible debentures
Advantages of debentures
Easy way to raise capital for the companies without pledging assets.
Higher interest returns for the investors.
Flexible and can be traded in the market.
Disadvantages of debentures
The financial burden for the company
Unsecured form of investments for the investor
The investor has no rights over the company
Investors do not enjoy voting rights.
For more details on this topic, refer to our article at: https://www.wallstreetmojo.com/debent...
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