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Disadvantages of Debentures?

Answer

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.
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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
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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
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