Description
to teach the different types of debentures ,their merits and demerits.
Presentation Transcript
Slide 1 : TYPES OF DEBENTURES SECURED DEBENTURES
UNSECURED DEBENTURES
CONVERTIBLE DEBENTURES
NON-CONVERTIBLE DEBENTURES
Slide 2 : MERITS OF DEBENTURES Low cost
No dilution of control
Attract large number of investors
Interest is treated as an expense
Low rate of interest
Flexibility
Slide 3 : DEMERITS OF DEBENTURES Fixed obligation
Reduction in credibility
Charge on assets
No voting rights
Slide 4 : DEBENTURES A debenture can be defined as ‘a document or a certificate’
Issued by a company under its seal as an acknowledgement
of its debt.
Slide 5 : CHARACTERISTICS OF DEBENTURES BORROWED FUND
FIXED RATE OF INTEREST
COMPULSORY PAYMENT OF INTEREST
SECURITY
REDEEMABLE
NO VOTING RIGHTS
APPOINTMENT OF TRUSTEE
Slide 6 : THAN THANK YOU
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