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Q: List the advantages to the company of raising funds through the issue of debentures?
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What are the Merits and demerits of debentures?

Hi merit of dbenture - trading on equity is possible as debenture holders get a lower rate of return than the earnings of the company. demerit of debenture-cost of raising capital through debentures is high of high stamps duty.


What is the difference between debenture and share?

debentures are a form of unsecured debt that is in the form of a bond. This type of debt is normally used by corporations for funding. A share is just a percentage of a company that you own through purchasing a share of stock of a company.


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What is redemption of shares and debentures?

A debenture is an unsecured loan you offer to a company. The company does not give any collateral for the debenture, but pays a higher rate of interest to its creditors. In case of bankruptcy or financial difficulties, the debenture holders are paid later than bondholders. Debentures are different from stocks and bonds, although all three are types of investment. Below are descriptions of the different types of investment options for small investors and entrepreneurs.Debentures and SharesWhen you buy shares, you become one of the owners of the company. Your fortunes rise and fall with that of the company. If the stocks of the company soar in value, your investment pays off high dividends, but if the shares decrease in value, the investments are low paying. The higher the risk you take, the higher the rewards you get.Debentures are more secure than shares, in the sense that you are guaranteed payments with high interest rates. The company pays you interest on the money you lend it until the maturity period, after which, whatever you invested in the company is paid back to you. The interest is the profit you make from debentures. While shares are for those who like to take risks for the sake of high returns, debentures are for people who want a safe and secure income.


What is the difference between a private placement and private equity?

A private statement is only used by a company if it is incapable of raising money through conventional public markets. A private equity is cash that is intended to convert a company into a privately held company.


What are the features of debentures?

debenture holders are not the owner of the company.they are considered as the creditors of the corporation or in other words the company borrow money from them through issuing debentures.moreover, they has no voting rights in the company's general meeting.


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One of the primary advantages is to take a company public. The underwritting process is to esencially to make a company go through the formalities that are required in order to register and eventually trade on an exchange. There are a couple of different phases and levels.


What are the advantages of a small business going international through incremental stages rather than as a global start up?

The advantages of a company going international through the small business stage model, or through incremental stages, is a minimized exposure to risk and a gradual development of the company's international expertise (245). Source, textbook: Multinational Management by Cullen & Parboteeah, 5e


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