What is Debenture? A debenture can be described as a debt instrument issued by a company to the public in order to raise funds for medium or long-term usage. It is just like a bank loan, with debt obligation and liability for interest payment, but instead of borrowing from a bank, these are issued and traded in the capital market. A debenture is a legal document that states the amount invested or lent, interest due, and the repayment plan. At the conclusion of the term, the investor receives ... Learn what debentures are, how they work, and their advantages and disadvantages. Compare debentures with shares and other financial instruments based on security, interest, and maturity. Delve into the comprehensive world of debentures . Explore their diverse types, essential purposes, unique characteristics, and weigh their pros and cons. Company Debentures - When it comes to corporate finance, company debentures are loan instruments for medium to a long term of period. These are offered by both large companies and the government.
