Question:
The debentures which do not have a specific charge on the assets of the company are called:
The debentures which do not have a specific charge on the assets of the company are called:
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Unsecured debentures are riskier for investors due to the absence of collateral backing.
Updated On: Jan 27, 2025
- Redeemable Debentures
- Unsecured Debentures
- Zero Coupon Rate Debentures
- Non-Convertible Debentures
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The Correct Option is B
Solution and Explanation
Debentures are classified based on whether they are secured against company assets. Unsecured Debentures, also known as naked debentures, do not have any specific charge on the company's assets. These debentures rely on the general creditworthiness of the issuer for repayment.
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