Debentures

A debenture is a financial debt instrument, It is a certificate or written acknowledgement of indebtedness by a company which has terms and conditions.  A debenture is a loan capital with a specific rate of interest. A debenture holder is a creditor to the company, the holder receives its interest on his capital if the company makes a profit or loss.

Types of Debentures:

1. Mortgage debentures.
2. Simple or naked debentures.
3. Redeemable debentures.
4. Irredeemable debentures.