Disadvantages of Debentures?


The disadvantages of debentures are cost of raising capital through debentures is high, high stamps duty, common people cannot buy debentures as they are of high denominations and they are not meant for companies earning greater than the rate of interest which they are paying on the debentures.
Q&A Related to "Disadvantages of Debentures?"
What is the advantages and disadvantages of debentures?
Debentures are more secure, but will often provide a lower rate of theoretical return. If a company goes bankrupt, the all stock must become worthless before any debentures get into
The debenture is basically the note in which the buyer signs saying that he owes the lender "x" amount of dollars and will pay it back with the agreed terms. Then the lender
Of the supreme court Anonymous
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An advantage of debentures is that holders are entitled to a fixed rate. Another benefit is that it provides stable income and guaranteed payments. Debentures ...
Advantages of a Public Limited Company are; the shareholders have limited liability, a company can raise additional capital by issuing more shares or debentures, ...
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