Debenture

A debenture is a type of debt instrument unsecured by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds. A debenture is a type of debt instrument that is not secured by collateral and usually has a term greater than 10 years. Both corporations and governments frequently issue debentures to raise capital or funds. Some debentures can convert to equity shares while others cannot.

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