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

During debenture period a company may raise loan by issue a debenture or debenture stock.

A debenture holdes can be consider as a special creditor who is entitled to receive interest no matter whether company makes a profit or a loss.

Debentures are secured and are freely transferable by the debenture holder.

Debenture holder do not take part in management meeting as they do not have voting rights.