Answer Posted / 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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