Creditorship Securities Homework Help

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What are creditorship securities?

Debt finance is known as creditorship securities. Here the finances are mobilised from the different creditors. Bonds and debentures are two main categories which are included under debt finance and make up the crux of this chapter.

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The two main terms bonds and debentures are distinct from one another.Debentures are unsecured loan certificates which are issued by a company. They yield a fixed interest rate and are secured against assets of a company. Bonds are agreements which have a legal force. Investments are loaned to an entity for a defined time span and fixed interest rate.

Focal points in creditorship securities

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