A debenture is a debt fund which is not backed by any of the assets of the issuer, instead, the credit of the issuer is the underlying security. The issuer of the debenture issues it for any specific needs like business expansions or to meet any upcoming expenses. The money raised through debenture is a borrowed capital so the issuers treat debenture holders as creditors of the company. For the investors of debenture, companies offer a predetermined interest rate. Watch this video to know everything about debenture.
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