what is diff b/w bonds and debenture
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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.
| Is This Answer Correct ? | 12 Yes | 1 No |
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.....:)
| Is This Answer Correct ? | 11 Yes | 0 No |
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.
| Is This Answer Correct ? | 4 Yes | 2 No |
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.
| Is This Answer Correct ? | 2 Yes | 0 No |
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..
| Is This Answer Correct ? | 2 Yes | 1 No |
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
| Is This Answer Correct ? | 1 Yes | 4 No |
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