What is a Debenture ?
Correct answer: A. Certificate issued by a company promising the payment of a specified amount at a fixed rate of interest after a specified period
- A. Certificate issued by a company promising the payment of a specified amount at a fixed rate of interest after a specified period
- B. Certificate for the investment in shares
- C. Certificate for the preference share
- D. None of these
Explanation
A debenture is a company's debt certificate promising repayment of a specified principal, usually with fixed interest, at a stated maturity. It represents borrowing by the company, not ownership through shares.
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