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Debentures hold greater risk because the company could eventually go out of the business. so this type of investment should be done very carefully.

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16y ago

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Why are the type of debentures?

Debentures are categorized based on various characteristics, such as security, convertibility, and redemption. Secured debentures are backed by collateral, while unsecured debentures rely on the issuer's creditworthiness. Convertible debentures can be transformed into equity shares, while non-convertible debentures cannot. Additionally, redeemable debentures have a fixed maturity date for repayment, whereas irredeemable debentures do not have a set repayment term.


How is interest paid on debentures is shown in Financial statments?

interest paid for debentures is a/an


What are the disadvantages of selling debentures?

Selling debentures can lead to several disadvantages for a company. Firstly, it increases the company's debt burden, which can negatively impact its credit rating and make future borrowing more expensive. Additionally, debenture holders typically have fixed claims on the company's assets and profits, limiting financial flexibility. Furthermore, the obligation to pay interest, regardless of the company's performance, can strain cash flow and affect operational stability.


What is debentures and its types?

Debentures are long-term financial instruments used by companies to raise capital, representing a loan made by investors to the issuer. They typically pay a fixed rate of interest and are secured against the company's assets or may be unsecured. The main types of debentures include convertible debentures, which can be converted into equity shares; non-convertible debentures, which cannot be converted; and redeemable debentures, which are repayable after a specified period, as opposed to irredeemable debentures, which have no fixed maturity date.


Which Indian companies have recently issued debentures?

recently which industry/company had issued its debentures

Related Questions

Why are the type of debentures?

Debentures are categorized based on various characteristics, such as security, convertibility, and redemption. Secured debentures are backed by collateral, while unsecured debentures rely on the issuer's creditworthiness. Convertible debentures can be transformed into equity shares, while non-convertible debentures cannot. Additionally, redeemable debentures have a fixed maturity date for repayment, whereas irredeemable debentures do not have a set repayment term.


What are the risk relating to the debentures?

What are the risk relating to th debentures?


How do you make debentures more popular.?

the companies that have issued debentures in recent years.give suggestions to make debentures more popular?


How is interest paid on debentures is shown in Financial statments?

interest paid for debentures is a/an


What are the disadvantages of selling debentures?

Selling debentures can lead to several disadvantages for a company. Firstly, it increases the company's debt burden, which can negatively impact its credit rating and make future borrowing more expensive. Additionally, debenture holders typically have fixed claims on the company's assets and profits, limiting financial flexibility. Furthermore, the obligation to pay interest, regardless of the company's performance, can strain cash flow and affect operational stability.


What is debentures and its types?

Debentures are long-term financial instruments used by companies to raise capital, representing a loan made by investors to the issuer. They typically pay a fixed rate of interest and are secured against the company's assets or may be unsecured. The main types of debentures include convertible debentures, which can be converted into equity shares; non-convertible debentures, which cannot be converted; and redeemable debentures, which are repayable after a specified period, as opposed to irredeemable debentures, which have no fixed maturity date.


Which Indian companies have recently issued debentures?

recently which industry/company had issued its debentures


Discount on issue of debentures is a?

capital loss to be written off over the tenure of the debentures .


Which Indian companies recently issued debentures?

recently which industry/company had issued its debentures


What is redeemable non convertible secured debentures?

history of secured redeemable non convertible debentures


What are examples of Debentures?

Debentures are a type of debt instrument that companies issue to raise capital, representing a loan made by investors to the issuer. Examples include convertible debentures, which can be converted into equity shares, and secured debentures, which are backed by specific assets of the company as collateral. Other types include unsubordinated debentures, which have priority over other debts in case of liquidation, and zero-coupon debentures, which do not pay interest but are issued at a discount to their face value.


What are the advantages and disadvantages of shares and debentures?

Shares offer the advantage of potential capital appreciation and dividends, giving investors a stake in the company's growth and profits. However, they come with higher risk, as shareholders may lose their investment if the company underperforms. Debentures provide fixed interest returns and are generally less risky, as they have priority over shares in the event of liquidation. On the downside, debentures typically offer lower returns compared to shares and lack the potential for capital gains.