Question:medium

Mention two characteristics of Debenture.

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Debenture = acknowledged debt, fixed interest, holder is a creditor, usually redeemable on a fixed date.
Updated On: Sep 24, 2026
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Solution and Explanation

Step 1: Pick one characteristic about the return it offers:
A debenture pays a pre-decided, fixed rate of interest that must be paid whether the company makes a profit or a loss, unlike an equity dividend.

Step 2: Pick one characteristic about repayment:
A debenture is usually issued for a fixed term and is redeemed (repaid) on or before a specified maturity date, unlike share capital which is generally permanent.

Final Answer:
Any two of: fixed interest regardless of profit, holder is a creditor (not owner), and it is repayable/redeemable on a fixed maturity date.
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