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Answer Posted / annapurna das
Debentures are like a promissory notes issued by the
companies.These can be called as the loan of a companies
which are incapable and insufficient with their amount
(capital)to start a business.They have to borrow some money
from outsiders and have to pay them certain rate of interest
and this is fixed rate of interest and whatever the amount
paid by the com is called a debenture.And the debenture
holders are the safest person because whether the com is in
profit or loss it has to pay a fixed rate of amount to the
debenture holder.
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