stock market
Looking at a half-full glass of water, you will never be empty-handed. Another effective method of acquiring funds is borrowing. Usually, companies borrow funds through bonds and debentures. Let’s understand with the help of this article what debentures and their types are.
What is Debenture?
A debenture is a financial term derived from the Latin word “debere” which simply means to borrow. It is a type of investment given by a business or other organizations to fund the small-caps, start-ups, and established organizations for their long-term operations and growth. The companies pay their debenture holders a fixed interest rate on these investments or securities which are repayable after a fixed period.
This form of capital is considered debt capital, so it appears as
Read Now: Type of Debentures
