Understand that a debenture represents a commitment from the company to pay back the money.

Company Promise

Investors buy debentures based on the trust in a company's ability to repay, not for immediate profit.

Investor Trust

Debentures typically offer a fixed interest, meaning investors know what to expect in returns.

Remember debentures are backed by the issuer's creditworthiness, not specific assets like property.

Failure to honor a debenture can lead to serious legal actions such as receivership.

Understand that debenture refers to a type of long-term security that signifies a debt to the issuer.