Private businesses and governments sometimes issue debt securities to raise additional capital. T🅰hese debt instruments are called debent🌟ures whenever they are not secured by any form of collateral.

Debentures, which otherwise act much like any other kind of bond, are ostensibly only backed by the faith and credit of the issuing༒ institutions. Debentures should not be confused with debe🦂nture stocks, which are a type of equity secur𒅌ity that act much more like a preferred stock than a bond.

Debenture Stocks

Debenture stockholders are entitled to 澳洲幸运5开奖号码历史查询:dividend payments at fixed intervals. Like regular debentures, debenture stocks are normally not backed by any collateral. However, a form of protection may be sought through a 澳洲幸运5开奖号码历史查询:trust deed that names a trustee to act on ﷺ🐼behalf of stockholders.

The way that debenture stocks operate is nearly identical to 澳洲幸运5开奖号码历史查询:preferred stock.

Debenture🐭 stocks are not perceived to be less safe than other equities since they carry the same degree of risk as other types of stock issues.ও Unlike traditional stocks, debenture stocks provide a more reliable stream of returns.

Debentures

Regular debentures act as loans against the company, which make the owner of the debenture a 澳洲幸运5开奖号码历史查询:creditor with preferred status in case of liquidation. Debenture stocks are an equity security, not a loan. This means🐭 debenture stockholders are put in a position behind debentures and all other forms of debt for liquidation purposes.

Debentures are perceived to be less safe than other bonds because they lack collateral security, although an exception is made in the case of government debentures such as 澳洲幸运5开奖号码历史查询:U.S. Treasury Bills.