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Question
What is the difference between a debenture and a loan?
What is the difference between a debenture and a loan?
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Solution
Debentures are issued by a company to raise funds and have to pay back to its debenture holders at the end of each year.
A loan is issued by the bank to the company, where the company has to pledge collateral property to receive a loan.
Debentures are issued by a company to raise funds and have to pay back to its debenture holders at the end of each year.
A loan is issued by the bank to the company, where the company has to pledge collateral property to receive a loan.
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