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From an investment or shareholder standpoint is a good thing

A debenture demonstrates confidence in the company. It is the same thing as lending someone money with interest without that someone puttiing anything up as collateral to guarantee the loan.

In other words, as the lender you are more sure that you will be paid back plus interest and therefore do not require anything as collateral.

It is the same principle as buying a government bond. As the purchaser, you know for sure you will get paid back plus interest.

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11y ago
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Q: Debenture a good thing or bad?
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