Debentures can be issued at: (A) Par (B) Premium (C) Discount (D) Transaction extra value Choose the correct answer from the options given below: |
(A), (B) and (D) only (A), (B) and (C) only (A), (B), (C) and (D) (B), (C) and (D) only |
(A), (B) and (C) only |
The correct answer is option 2- (A), (B) and (C) only. Debentures can be issued at Par, Premium, Discount. 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. Debentures can be issued at par, at a premium or at a discount. They can also be issued for consideration other than cash or as a collateral security.
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