What are debentures?

Debentures are a popular form of debt investment that offers individuals and organizations an opportunity to generate income while providing capital to businesses and governments. In this comprehensive guide, we will delve into the world of debentures, explaining what they are, how they function, their advantages, and risks, and why they are considered an attractive investment option.

What Are Debentures?
Debentures are fixed-income securities issued by companies or government entities to raise funds. Essentially, they represent a loan agreement between the issuer and the debenture holders, where the issuer promises to repay the principal amount along with regular interest payments over a specified period. Debentures are typically unsecured, meaning they are not backed by any specific collateral, making them reliant on the issuer's creditworthiness.

https://www.finowings.com/Finance/what-are-debentures