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/debentures/
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