What do you mean by debentures?

What do you mean by debentures?

An unsecured loan certificate issued by a company, backed by general credit rather than by specified assets.


A type of long-term unsecured bond (loan), taken out by a company, which it agrees to repay at a specified future date. The company will usually pay a fixed rate of interest to debenture holders each year until maturity, and if it fails to pay either the interest or the principal amount of the loan when the time comes, the debenture holders can force the company into liquidation and try to recover, along with other creditors, their money from a sale of its assets.

Source: http://www.finance-glossary.com/define/debenture/365

One comment

  1. helo sir my name is mohammed ali tajriq i am a student of i.com i wanted to ask one question that on this page and on my bokk the answers are not same and my borad if fedral board fbise so i can do these answers also

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