Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
'The procedure for the issue of debentures is the same as that for the issue of.............'
Options:
Shares
Mutual funds
Treasury bills
Derivatives
Correct Answer:
Shares
Explanation:
The procedure for the issue of debentures is the same as that for the issue of shares. The intending investors apply for debentures on the basis of the prospectus issued by the company. The company may either ask for the entire amount to be paid on application or by means of instalments on application, on allotment and on various calls.