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The Investors Trading Academy presents the term "Debentures." A debenture is a promissory note or corporate bond primarily supported by the borrower’s reputation and integrity, rather than specific physical assets. If unsecured, it is referred to as a bare or naked debenture; if secured by specific property, it is called a mortgage debenture. Debentures are a type of debt instrument that lacks collateral and are backed solely by the issuer's creditworthiness. Both corporations and governments issue debentures to raise capital, and they are documented in an indenture. Investors typically purchase debentures based on confidence in the issuer's ability to repay.