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A fixed sum debenture is a type of debt instrument issued by a company that promises to pay a specified amount of interest at fixed intervals, along with the principal amount at maturity. It is a secured form of borrowing, meaning it is backed by the company's assets, providing a level of security to investors. Fixed sum debentures typically have a defined term and are considered lower-risk investments compared to equities. Investors receive predictable returns, making them appealing for conservative investment strategies.
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How is a debenture redeemed?
A debenture is typically redeemed at its maturity date, where the issuer repays the principal amount to the debenture holder. This can occur through a lump-sum payment or in installments, depending on the terms outlined in the debenture agreement. Additionally, issuers may have the option to redeem debentures early, often at a premium, under specific conditions. Redemption procedures and terms should be clearly stated in the debenture documentation.
What are the differences between share and debenture?
SHARES- 1.share holder is the real owner of the company.share holder have not fixed dividend rate.share holder have not maturity period.share are not redeemed.shares are more volatile.share holder have high risk.share holder have high return.share holder have right on residial income. DEBENTURE-1.debenture holder is the creditor of a company.they have fixed rate of interest.they have a maturity period.they dont have right to vote.debentures are redeemed.they are not volatile.they have no risk.they have low return.
Why debentures are not forfeited?
debenture is a loan to company and its face value will be higher moreover it carries fixed interest which is charge against profits.so there is no chance from the side of debenture holder for non payment of calls after repeated notices from the company. from the view point of company it cannot forfiet a debenture and treat it as a capital profit because they are not owners is this explanation coreect for that question?
Is debenture a current asset?
No. Debenture is a form of liability for a business.
Total cost is the sum of the?
fixed and variable costs
What is the difference between fixed deposit and non convertible debenture?
fixed deposit has its fixed term, but debenture does not have any term. fixed deposit can be invested in eqty,debt or any other , but the debenture is debt only.
Debenture holder treated as member or not?
No,debenture holders are not treated as members. Debentures are mere debts and debenture holders are just creditors.They give their money to the company at a fixed interest rate.Debenture holders being creditors get guaranteed interest, as agreed, whether the company makes profit or not. Also debenture holders have no right to attend and vote at the meetings of the share holders. Answered By:- Karunakar Gautam DCE Student
What are the differences between share and debenture?
SHARES- 1.share holder is the real owner of the company.share holder have not fixed dividend rate.share holder have not maturity period.share are not redeemed.shares are more volatile.share holder have high risk.share holder have high return.share holder have right on residial income. DEBENTURE-1.debenture holder is the creditor of a company.they have fixed rate of interest.they have a maturity period.they dont have right to vote.debentures are redeemed.they are not volatile.they have no risk.they have low return.
What is a debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
Solve questions of debenture in advance accounting?
what is debenture
Total cost is the sum of the?
fixed and variable costs
How does a term loan differ from a non invertible debenture?
Noninvertible debenture
What is the nature of debenture suspense account?
Debenture Suspense is adjustment account which is prepared at the time of issue of debenture as collateral security to record the collateral issue.
What is debendure?
I presume you meant debenture, a debenture is a long term loan taken out by a business
After redemption of debenture debenture reduption reserve where to transfer whether in PL Ac or in General reserve.?
After redemption of debentures, debenture redemption reserve is to be transferred to general reserve.
IS E P C Contract as a fixed sum price?
kind of.
Give cases in debenture company law?
i want to get some information about the debenture cases. thank you
