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Sunday, March 21, 2010

A Redeemable Debenture.-InvestmentAgenda

Debentures are loans that are usually secured.
Debenture holders are privileged creditors.
They are entitled to interest ,even if the company makes a loss.


A business has many ways to receive money.
They may be in the form of deposits, debentures , laons .
The debenture holders have a hold in the asset.
This is the most secured form of  advances.
Failure of business may place other creditors in a secondary level.
The secured debentures can be reclaimed without much of a loss.
It is another form of investment that  the investor can think of.


Such being the scenario, the investor can unload his surplus in buying debentures  in credit worthy companies.
At the time of redemption , they stand to gain .
The gain would be of  a reasonable stance say to the tune of 10-15%.
No loss or wipe out as in the case of shares can be envisaged.

This instrument is the most reliable ,most revenue yielding, most assured investment.

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