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hi friends good day today let us try to understand about what are debentures and what are the types of debentures are available through this video ing to robert frost a bank is a place where theyll lend you an umbrella in fair weather and ask for it back when it begins to rain before we go in please subscribe for more videos click the bell icon for updates what are debentures a debenture is a loan issued at a fixed interest depending upon the reputation of the company a debenture is also a type of bond or other debt instrument which is usually not backed by any collateral and usually has a term greater than 10 years they are backed only by the credit worthiness and reputation of the issuer when companies need to expand themselves and are in the need of funds they take the help of debentures some debentures can be converted to equity shares while others cannot the legal term debentures is originally referred to document that either creates a debt or acknowledge it but in some countries
