Debenture Stocks

A debenture is an acknowledgement of debt by a company. Debentures may be secured against certain specific properties of the company. However, debentures may also be unsecured or may be convertible to equity at a future date, to be exchanged for the company’s ordinary shares at the holders’ option depending on the agreement. Interest on debentures is payable on specified dates whether or not there are sufficient profits.

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