Share Capital Share capital is the money a company raises by issuing common or preferred stock. A company’s share capital is the money it raises from selling…
Characteristics of Debentures Debentures are ranked as creditors of the company. These are the popular method the companies use to procure long-term finance for their financial needs. A…
Concept of Debentures A debenture is a type of bond or other debt instruments that is unsecured by collateral. It is used to issue the loan by government…
Important role of Debentures as a source of finance Debentures are a long-term source of finance. Debentures as a source of finance suit companies that have regular earnings to service the debt have a…
Importance of Debentures An issue of debenture plays a great role in long-term planning and decision-making. Debentures are a source of finance mainly suited for companies that have…
Differences between Shares and Debentures Shares and debentures both are ways to raise capital however debentures are borrowed capital whereas shares are a portion of the company’s capital itself. The…
Auditor Opinions A credential that follows financial statements is an auditor’s opinion. It is based on an analysis of the processes and documents used to create the…
Types of Debentures on the Basis of Convertibility Debentures are the most popular form of debt capital. A debenture is a written tool accepting a debt under the general authentication of the enterprise.…
Types of Debentures on the Basis of Redemption The term ‘debenture’ is derived from the Latin word ‘debere’ which refers to borrow. It represents a superior and refined form of the age-old promissory…
Types of Debentures on the Basis of Security Debentures can be secured in nature, it may be unsecured in nature. A debenture is a written tool accepting a debt under the general authentication…
Types of Debentures on the Basis of Record Point of View Debentures are the most popular form of debt capital. The debenture classification is based on their tenure, redemption, mode of redemption, convertibility, security, transferability, type…
Disadvantages of debentures A debenture refers to a document that explicitly details the terms and conditions of a loan to a company. They are the liability of the…