what is debentures
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Answer / vinay magaji
debenture is a instrument in written or a bond issued by a
comany under its common seal as acknowledgement of debt by
company,a fixed percentage of interest is paid by comapy
@stated interval.
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Answer / shikha malpani
Debunture can be short term as well as long term liabilty
of a co. Its a fund raising mechanism from the banks or
Financial institutions to the tune of its capital struture.
Debunture holders are the creditors to the company while
shareholders are the owners of the co. and the latter is
liable to gain profits as well as to bear losses of co.
unlike the debunture holders who will get their money
(principal amt.+interest) in case the company goes
insolvent.
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Answer / dr lama
debenture creates ability to obtain goods or services of a
customer before payment, and based on trust that the payment
will be maid in future with a fix interested permonth. and
at the time of transaction, the lender and the borrower sign
a deal paper regarding the payment system and the lender
keep some thing (equivalent to the borrow money, though it
not ture all the time) as an assurance of principle money
that lender'll give to the borrower.
and this particular paper or dealing paper called the
Debenture/unsecured bond/Debenture bond. and it is
transferable. and lender can sale this to another company or
another individual.
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Answer / jai prakash
Debenture is a short term loan facility and its also a
another mean of debenture that is "when company needs a
huge capital to start a business and its impossible to
company to stand such a huge capital. co. it is a fixed
interest rate...........
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Answer / m.naresh gupta
debentures means like a "document" this issued by
company.when starting the business of company wants to huge
capital then issued debentures. Debenture holdres gets
fixed rate of interest. Debentures holders are not owner of
the company. this holders have't any rights and voting.
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Answer / omi
n law, a debenture is a document that either creates a debt or acknowledges it. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note.
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Answer / brainord .d
A type of debt instrument that is not secured by physical
asset or collateral. Debentures are backed only by the
general creditworthiness and reputation of the issuer. Both
corporations and governments frequently issue this type of
bond in order to secure capital. Like other types of bonds,
debentures are documented in an indenture.
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Answer / s.anil kumar
Debenture is an instrument issued by a company under its
seal acknowledging a debt due by it to its holder....its
less secured when compare wid bond bt gets higher rate of
interest...
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Answer / business
Debentures are the important instruments for raising long
term debt capital . A company can raise fund through issue
of debentures , which bear a fixed rate of interest.
The debenture issued by a company is an acknowledgement that
company had borrowed a certain amount of money , which it
promise to repay at a future date . Debenture holder's are
therefore termed as creditors of the company . Debentures
holders paid a fixed stated amount of interested at
specified intervals say six months or one year . Public
issue of debentures requires that the issue be rated by a
credit rating agency like CRISIL on aspect like track record
of the company , its profitability , debt service capacity
etc ..
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Answer / chandu
Debenture is a certificate issued by a company under its seal acknowledging a debt due by it to its holder.
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