Some risks associated with debentures are as follows. So let us check it information on risks of debentures one by one.
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Check out Characteristics of Debentures discussed below. So let us find out some points on characteristics to know more about debentures. Check out related content on Advantages and Disadvantages of debentures.
Debentures Characteristics :
Debenture holders do not carry voting rights and debenture holders are considered as the creditors of the company.
List of related posts - Debentures. Some of the articles on debentures are as follows:
Check out Benefits of Debentures discussed below. So let us find out some information on benefits to know more about debentures. Also check out Advantages and disadvantages of debentures for more details
Debentures Benefits :
Debentures helps to provide long term funds to the companies.
The rate of interest which is payable on debentures is generally lesser than the rate of interest which is being payabe on shares.
Check out Definition of Debentures discussed below. So let us find out some related points on definition to know more about debentures. Similar article on advantages and disadvantages of debentures
Debentures Definition :
Debenture is a certificate of a loan, loan bond or a written acknowledgement of indebtedness by the comapany setting out the terms and conditions of the loan
Check out Kinds of Debentures discussed below. So let us find out some information on kinds to know more about debentures. Related post on advantages & disadvantages of debentures
Debenture Kinds :
Debentures Based of Redeemability - Redeemable and Irredeemable
Debentures Based on Security - Secured debenture and Unsecured debenture
Debentures Based on Transferability - Bearer and Registered
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.
Check out Types of Debentures discussed below. So let us find out some information on types to know more about debentures. You might also like Advantages & Disadvantages of Debentures
Debenture Types :
On basis of Security : Secured Mortgage debenture and Unsecured Naked debenture
On basis of Tenure : Redeemable debenture and Perpetual or Irredeemable debenture
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.