A debenture is a type of debt instrument unsecured by collateral.Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support.
Debenture. A debenture is an unsecured bond. Most bonds issued by corporations are debentures, which are backed by their reputation rather than by any collateral, such as the company's buildings or its inventory.
Debenture holders have no rights to vote in the company's general meetings of shareholders, but they may have separate meetings or votes e.g. on changes to the rights attached to the debentures. The interest paid to them is a charge against profit in the company's financial statements. The term "debenture" is more descriptive than definitive.
Debenture holders (investors) do not have any rights to vote in the company's general meetings of shareholders, but they are allowed separate meetings or votes e.g. on changes to the rights attached to the debentures. The interest paid to debenture holders is calculated as a charge against profit in the company's financial statements.
Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Debentures”. A debenture is a promissory note or a corporate bond which is ...
6. Interest on debenture is payable even if there is a loss. Advantage of Debentures: . Following are some of the advantages of debentures: (a) Issue of debenture does not result in dilution of interest of equity shareholders as they do not have right either to vote or take part in the management of the company.
debentures a means of financing companies through fixed-interest LOANS secured against company ASSETS.In some cases the company may offer a specific asset such as a particular machine as security for the loan (fixed charge); in other cases lenders are offered security by means of a general claim against all company assets in the event of default (floating charge).
Debentures. Debentures are long-term financial instruments which are acknowledged as a debt obligation towards the issuer. Some debentures have a feature of convertibility into shares after a certain point of time. Non-convertible debentures (or NCDs) are the debentures that can’t be converted into shares or equities are called.
Debentures are sometimes called revenue bonds because the issuer expects to repay the loans from the proceeds of the business project they helped finance. Physical assets or collateral do not back ...
A debenture is a bond issued with no collateral . Instead, investors rely upon the general creditworthiness and reputation of the issuing entity to obtain a return of their investment plus interest income . If the issuer of a debenture were to default , investors would be placed at the le