Multiple choice

Debentures are

  1. part of profits distributed to the shareholders

  2. fixed-interest securities

  3. securities which vary with market norms

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Debentures are fixed-interest securities issued by companies to raise capital. They represent long-term debt instruments where the issuer promises to pay a fixed rate of interest. They are not profit distributions like dividends.

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