Advantages and Disadvantages of Debentures?

Answer

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 also have precedence over other types of creditors. A disadvantage is that they are far more secure than stocks and bonds.This means that the return is less. Another disadvantage is debenture holders are not considered shareholders in a company. This means that they have no voting rights whatsoever in company changes.
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