Debentures: A Complete Guide for Investors
A debenture is one of the long-term debt instruments floated by companies and governments to mobilize funds. Those who buys it, in effect, lend money to the issuer and, as a recompense, get interest periodically at a predetermined rate for a predetermined time. Unlike stock, debenture holders do not have ownership of the company but are guaranteed regular interest and principal repayment on maturity.