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name the return given to debeture …

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name the return given to debeture holders for using their funds.

Posted by Raju Yadav 4 years, 8 months ago

CBSE > Class 11 > Business Studies

2 answers

Manpreet Kaur 4 years, 8 months ago

Dividend

Sia ? 4 years, 8 months ago

Debentures are methods by which the Public companies borrow money for their working. The debentures are borrowed through rate interest which are fixed. The lenders who invest in the company through their debentures are referred to as "debenture holder".
The debenture holders are paid an interest on a fixed rate which are paid at a fixed due date. The debenture holders lend the money to the companies and are given an agreement or "trust deed" if required.
The debentures are normally used as debt instruments that are made for a long term through which the enterprises borrow the finances. The debentures can be of many kinds like the "Secured and unsecured Debentures", "redeemable and non-redeemable debentures" and more

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