Practicing Success
Debenture mean: |
Owned capital Borrowed capital Both of these None of these |
Borrowed capital |
Debenture: The word ‘debenture’ has been derived from a Latin word ‘debere’ which means to borrow. A debenture is a type of financial instrument that represents a form of borrowed capital for a company or organization. When a company issues debentures, it is essentially borrowing money from investors or the public. These investors lend money to the company, and in return, the company promises to repay the principal amount along with periodic interest payments at specified intervals, typically until the debenture's maturity date. |