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.
NO,debenture holder is the creditor of the company
it is a document that serve as evidence of a debenture for a debenture share holder
it is a document that serve as evidence of a debenture for a debenture share holder
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.
interest
Debenture and Preference shares are often confused with each other,, Basically Preference share is an equity type instrument but debenture is a straight forward loan. Debenture bear fixed interest and its a TAX deductible expense. Company may goes into liquidation if it fails to pay interest on debenture. on the other hand company pay wish to choose not paying any dividend to preference share holder in any given period. debenture holder are lender to company Preference share holder owns the company
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.
No, trustee is different from a guarantor.
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The face value of a debenture, also known as its par value or principal amount, is the amount that the issuer agrees to pay the debenture holder at maturity. It is typically the original investment amount and is used to calculate interest payments, which are usually expressed as a percentage of the face value. For example, if a debenture has a face value of $1,000 and an interest rate of 5%, the holder would receive $50 in interest annually until maturity.
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.
Transfer of a debenture refers to the process of transferring ownership of a debenture from one party to another. This typically involves the endorsement of the debenture by the current holder and the registration of the new owner with the issuing company or its registrar. The transfer may be subject to specific terms outlined in the debenture's indenture, including any restrictions on transferability. Ultimately, it allows investors to buy and sell debentures in the secondary market.