Debentures are a type of debt instrument or financial instrument that is issued by a company or government entity to raise capital. When you buy a debenture, you are essentially lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity. Here are some key characteristics of debentures: Fixed Interest Payments : Debenture holders receive fixed interest payments at regular intervals, typically semi-annually or annually. These interest payments are also known as "coupon payments." Maturity Date : Debentures have a specified maturity date when the issuer is obligated to repay the principal amount to the debenture holders. No Ownership Stake : Unlike stocks, debentures do not represent ownership in the issuing company. Debenture holders are creditors of the company, not shareholders. Priority in Case of Default : In the event of bankruptcy or default by the issuing company, debenture holders have a higher claim on th...