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प्रश्न
Ms. Surabhi wants to invest ₹ 2,00,000 in a debt security of a company for ten years. She prioritises the safety of her investment.
Which debt security would you recommend for her investment? Explain any four of its features.
स्पष्ट कीजिए
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उत्तर
Debt security would be debentures.
Features of Debentures:
- Acknowledgement of Debt: Debentures are a form of borrowed capital where the company acknowledges a debt to the investor.
- Fixed Rate of Interest: Debentures come with a pre-determined interest rate, ensuring regular and predictable income for the investor.
- No Voting Rights: Debenture holders are creditors, not owners of the company, so they do not participate in management decisions.
- Priority in Repayment: In case of winding up, the investment in debentures is repaid before preference and equity shareholders, making it less risky.
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