Work in line in the Debenture effortlessly

Aug 6th, 2022
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  1. Drag and drop a file to the highlighted pane or import it from your device and cloud, or an external link.
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How to Work in line in the Debenture

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imagine this scenario you and your best friend are out in the mall and you happen to see a fantastic pair of jeans on sale now you desperately want to buy it but you are a few dollar shop so you ask your friend to lend you some money so that you can buy that jeans and you will you know pay him back later now this deal is called as friendship now im going to you know blow this same scenario out of proportion now imagine lets say you own a company and decide to expand it by opening a new branch for that you are you know short of capital lets assume that so you want to raise the capital right now what you do in this case is you collect the money from a group of investors or financial institutions and you promise them to repay the loan after a certain time period along with interest now this deal is called as debentures and yes thats the topic for the day today in todays video well discuss all about debentures how it works its types pros and cons and much much more hi all my name is

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A debenture is a marketable security that businesses can issue to obtain long-term financing without needing to put up collateral or dilute their equity. A debenture is a type of long-term business debt not secured by any collateral.
Generally speaking, bonds and debentures are safer investments than individual stocks or mutual funds. Thats because bonds can offer a stable or guaranteed rate of return over time.
Companies use debentures, secured and unsecured notes to raise money from investors. They offer fixed interest payments but returns often depend on risky investments. You could lose all your money if the company or investment fails.
Examples of debentures are Treasury bonds and Treasury bills.
debenture stock, loan contract issued by a company or public body specifying an obligation to return borrowed funds and pay interest, secured by all or part of the companys property. Certificates specifying the amount of stock, with coupons for interest attached, are usually issued to the lenders.
Debentures are bonds or other forms of debt that dont have to be paid back. Due to the lack of collateral, debentures rely on the credit worthiness and reputation of the person or company that issued them.
How are debentures structured? Debentures are long-term loans and generally have a maturity date of five to 10 years. Since theyre unsecured, the issuer typically offers a higher interest rate than they would pay for a secured loan or bond.
An investor will prefer to invest in the debentures of a company because these are secured, on winding up of the company, these are repayable before payment is made to the shareholders. Also, a fixed amount of interest on debentures is payable, whether there is any profit or not. Q.

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