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Features of Debentures

Check out Features of Debentures discussed below. So let us find out some information on features to know more about debentures.

Debenture Features :

The rates which is to be paid or payable on debentures is fixed.

Debenture may be convertible

No voting rights on debenture, holder does not have right to vote in a meeting.

Instrument of loan

Debentures can be redeemed after a fixed period of time.

Debenture holders can be considered as creditors of the company carrying a fixed rate of interest.

Advantages and disadvantages of Debentures

Check out Advantages and Disadvantages of Debentures discussed below. So let us find out some information  to know more about it. The debentures which are generally issued by the corporations, are promises to pay specific amount of principal or money at a specified time or date over the particular course of the loan tenure, during which time interest is paid at a fixed rate on decided dates.

Advantages of Debentures :

Debentures is used to provide long terms funds to the company when needed.