What Is Debentures?
The debentures are organizations and so on government, financial organ, Business directly when borrows money the war chest to the society, to the investor distributes, pledges according to certain interest rate interest payment and according to the agreement condition repayment capital creditor’s rights debt certificate. The bond essence is the debt certificate, the legally binding. Between the bond buyer and the publisher is one kind of creditor’s rights debt relations, the bond publisher is the debtor, the investor (or load holder) is a creditor. The bond is one kind of negotiable securities, is social each kind of economic subject for the war chest, but writes up to the bond investor, and pledges according to certain interest rate on term interest and the due repayment capital creditor’s rights debt certificate. Because the bond interest usually is determined beforehand, therefore, the bond is called the fixed interest percentage negotiable securities.
