It is a good source of finance as the finance is taken from the people at large but needs to be returned after a specific time along with the interest over the years.
The Advantages of Debentures
They can be converted in to equity shares of the company as well, if the company wants to become an investor than being a creditor of the company.
In an event of company’s liquidation, the debenture holders are paid first then the equity shareholders of the company.
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