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In corporate finance, a debenture is a medium to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term debenture originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a ....etc

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A transformer is an electrical device that takes electricity of one voltage and changes it into another voltage. You'll see transformers at the top of utility poles and even changing the voltage in a toy train set.

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Types of shares

A company may have many different types of shares that come with different conditions and rights.

There are four main types of shares:

Ordinary shares are standard shares with no special rights or restrictions. They have the potential to give the highest financial gains, but also have the highest risk. Ordinary shareholders are the last to be paid if the company is wound up.
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Meaning:

If a company needs funds for extension and development purpose without increasing its share capital, it can borrow from the general public by issuing certificates for a fixed period of time and at a fixed rate of interest. Such a loan certificate is called a debenture. Debentures are offered to the public for subscrip tion in the same way as for issue of equity shares. Debenture is issued under the common seal of the company acknowledging the receipt of money.

Features of Debentures:

The important features of debentures are a ....etc

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