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A debenture is a debt security issued by a corporation that is not secured by their assets, but rather by the corporations credit. Bonds are lOUs between a borrower and a lender. The borrowers are generally public financial institutions and corporations. The lender is the bond fund, or an investor.
Wiki User
∙ 9y ago
Wiki User
∙ 14y agoBoth debentures and bank loans are debt liability of a company which need to be repaid by the company. Generally the debentures issued by a company are secured and where the debentures are issued without any security in favour of the debenture holder, such debentures are deemed as 'deposits' for which the company has to comply the provisions of Sec. 58A of the Companies Act, 1956. Bank Loans can also be secured as well as unsecured but the applicability of the explanation of deposits do not extend to loans whether secured or unsecured.
Wiki User
∙ 11y agoA note is generally backed by a legal claim on some specific assets in case the issuer defaults. A note is therefore a secured bond. On the other hand, debentures are unsecured bonds and are not backed up by any specific assets.
A debenture usually issues higher returns due to the risk involved.
A Loan note generally involves less capital than a debenture.
Wiki User
∙ 10y agoSame as between Snake and rattle snake
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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.
Which bonds will have the higher coupon rate a secured debt or a debenture?
i guess debenture, since its more riskier!
What is the difference between a convertible bond and a convertible debenture?
A convertible debenture is a type of convertible bond. However, a debenture is unsecured debt, which means that there is no collateral for the bond. The alternative to a debenture would be a secured bond such as a mortgage bond that would be secured by real estate. If the company goes out of business, the collateral for the secured bonds would be used to pay off those bonds and the holders of the debentures would be paid from whatever is leftover. Most convertible bonds are debentures.
If someone holds a debenture what can they do with it?
With a debenture, a company can hold a debt with another. A debenture is a loan agreement where there is no collateral or assets involved. It is based on the promise and credit history of the company that it will be paid back.
What is the difference between a debenture and a bond?
Long-term debt securities issued by the Government or any of the State Government's or undertakings owned by them or by development financial institutions are called as bonds. Instruments issued by other entities are called debentures. The difference between the two is actually a function of where they are registered and pay stamp duty and how they trade. reference: http://www.fimmda.org/useful_links/faq.asp#p3
Difference between Debenture Redemption Reserve and Capital redumption Reserve?
The Capital Redemption Reserve is a fund that secures a creditor. Debenture Redemption Reserve is for the purpose of security payments only.
What are debenture bonds?
A debenture is a debt security, like a bond is, but unlike a bond a debenture is unsecured. However, the two terms are basically interchangeable--a lot of people call bonds debentures and debentures bonds.
What is zero interest debenture?
Issue of the zero interest debenture does not carry any explicit rate of interest.The difference between th face value and the purchase price is the return to the investor(lender).
What is Debenture Redemption Reserve?
Debenture is a debt instrument to raise funds. It has a maturity period associated with it. At the end of the maturity, the company(borrower) should return the interest and principal amount. Debenture Redemption Reserve is an amount kept as reserve for paying the debenture holder at the end of the maturity period.
Difference between a debenture holder and Investor?
A debenture invests fund in the company and is sure of its return eventhough the company fails through its corporate stock. An investor can only gain depending upon the market condition.
What is the fine line difference between commercial debt and consumer debt?
Consumer debt is governed by the FDCPA....commercial debt is not.
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.
